Winter months gives insolvency firm a boost
BEGBIES TRAYNOR announces it has benefitted from seasonal activity over the winter months.
Financial performance was consistent with the board’s expectations, in its latest trading statement for the third quarter ended 31 January 2014.
Net debt is also in line with expectations and the group is still within its banking facilities, according to its statement to the London Stock Exchange.
Ric Traynor (pictured), executive chairman Begbies Traynor, said: “Increased activity levels in the typically busier winter months and the continued benefit of prior year cost savings, leave the group well placed to deliver the Board’s expectations for the year as a whole.”
“The group remains in a strong position to take advantage of opportunities to develop and enhance the business, both organically and through selective acquisitions.”
This latest news comes just weeks after the firm revealed it had increased insolvency cases by 1,000 on the previous year.
According to the firm’s corporate insolvency appointments for 2013 it handled 1,000 more cases compared to 2012, including 807 liquidations and 133 administrations.
Revenues for the firm were £22.3m in 2013 compared to £26.1m for the six months ended 31 October 2013.
EBITA also fell to £2.6m last year compared to £3.7m in 2012 with profit before tax remaining steady for both years at £2m. However, the firm said that its cost reduction programme was reaping savings of £2.9m compared to an anticipated £2m.
In April last year the firm secured new debt facilities. It has a £10m revolving credit facility with HSBC due to mature in July 2017, with the exact same deal and timing also with Santander. It also has a £10m facility with M&G UK Companies with £5m maturing in April 2020 and £5m maturing in April 2021, as well as a £5m overdraft with HSBC.
The listed firm’s share price was 42.00p today, giving it a market cap of £38.39m. For more listed company information visit the SharePriceCentre.