Begbies shares up 9% amid insolvencies boost

Begbies Traynor Group executive chairman Ric Traynor

Shares of Manchester-based corporate rescue giant Begbies Traynor Group plc rose 9% on Tuesday after it released a trading update for its third quarter ended January 31, 2020.

“The group has continued to trade well in the quarter with results showing strong growth in revenue and profit compared to the prior year,” said the update.

“This performance, combined with a strong first half, leaves us confident of delivering results at least in line with expectations for the year as a whole.

“The recovery and financial advisory business continues to perform well, with a combination of organic growth and the positive contribution from our current year acquisitions. 

“The insolvency market remains favourable with the number of corporate insolvencies (source: The Insolvency Service) in the calendar year 2019 having increased by 7% to 17,196 (2018: 16,105). 

“The property advisory and transactional services business has traded in line with expectations and the development of the division has continued with the integration of the Ernest Wilson business sales agency which we acquired in October 2019.

“The current year acquisitions have performed in line with our expectations and integration is proceeding well.”

Begbies Traynor Group executive chairman Ric Traynor said: “The group has delivered strong organic growth, complemented by good performances from our recent acquisitions.

“This, combined with continuing favourable UK insolvency market conditions, gives us confidence in delivering results at least in line with current market expectations for the full year.  

“We continue to increase the scale of our business recovery practice and extend our property services offering, and our strong financial position leaves us well placed to further build upon our track record of organic and acquisitive growth.”