Begbies Traynor warns of insolvency wave as revenue jumps 39 per cent
Insolvency expert Begbies Traynor has reported strong financials for the first half of the year with revenue and profits on the rise.
The company which helps struggling businesses to recover and provides property services consultancy saw revenue climb by 39 per cent year-on-year from £37.5m in 2020 to £52.3m while profit before tax was lifted from £0.5m to £2.7m in the six months to 31 October.
Bebgies Traynor expects to perform in line with market expectations for the full year and said a wave of insolvencies is likely to boost demand for the company’s services following the removal of government pandemic support measures.
“I am pleased to report a strong financial performance in the period, which is a testament to the benefit and integration of our recent acquisitions and maintains our track record of growth in revenue and adjusted earnings,” said chief executive Ric Traynor, referring to the company’s purchase of a team from chartered surveyors Fernie Greaves in October and MAF Finance Group in May.
“This strong performance, and an anticipated increase in national insolvency numbers following the removal of the Government’s pandemic support measures, leaves us confident of delivering market expectations for the full year,” he continued.
The company strengthened its balance sheet by increasing net cash to £1.2m over the period. Investors were treated to an interim dividend payout of 1.1p per share while losses per share declined from 0.3p to 0.2p.