Begbies Traynor sees interim revenues and profits fall
Despite efficiency savings, the soft insolvency market eats into Begbies Traynor's numbers
ANOTHER TOUGH six months for Begbies Traynor saw revenues and profits fall during the period.
The listed insolvency firm posted revenues of £22.3m for the six months ended 31 October 2013, down from £26.1m a year earlier. Adjusted profit befoe tax was £2.1m, compared to £3.2m last year.
Executive chairman Ric Traynor (pictured) said that “benign” finance conditions continued to impact on the number of insolvencies, and therefore the firm’s revenues. Efficiencies of £2.9m have been achieved year on year, compared to the previously reported figure of £2m.
“These savings have mitigated the reduction in revenues and enabled the group to continue trading profitably in difficult market conditions,” said Traynor.
Net debt has been reduced to £17.8m at October 2013, compared to £18.3m a year earlier.
Increased workflow is expected over winter, while its acquisition in October of Manchester firm Cooper Williamson should positively impact its numbers, Traynor added.
“With the benefit of our reduced cost base, a stable financial position and committed medium and long-term bank facilities, the group remains in a strong position to take advantage of opportunities to develop and enhance the business, both organically and through selective acquisitions.”