Insolvency specialist Begbies Traynor makes hay as economy slows
Insolvency specialist Begbies Traynor has increased its dividend as it capitalises on a shaky economy and a growing number of firms facing the end of the road.
Revenue reached £65.9m up from £58.5m when compared to the same period last year, according to its half year results published this morning.
Adjusted profit before tax also increased by over £10m to £12.8m, as the firm was bolstered by companies falling into hot water due to a tough economic climate.
The number of firms going bust has risen to its highest level since 2009, a study by the UK Insolvency Service, reported in October.
The consultancy said it “anticipates” continued increase in insolvency activity as it heads into the final quarter of the year.
Begbies Traynor, which has over 100 offices across the UK, increased its interim dividend to 1.3p up from 1.2p last year, which extends its six consecutive years of dividend growth since 2017.
Ric Traynor, executive chairman of Begbies Traynor Group, said:”I am pleased to report a strong financial performance in the first six months of the financial year.
“We have continued to execute our strategy to grow the business, reporting double digit revenue and profit growth. The group’s financial performance in the first six months leaves the board confident of delivering current market expectations for the full year, which will extend our strong financial track record of growth.
He added: “Our insolvency team has maintained its market-leading position (by volume) in a growing marketplace nationally, with an increase in insolvency numbers reflecting the current interest rate and inflation environment; whilst our advisory and transactional services teams had a successful six months, reflecting the breadth of advice we provide to our clients, which continue to provide a solid platform for growth.”