Begbies Traynor first-half profit up 25%

Shares of Manchester-based corporate rescue giant Begbies Traynor Group plc rose about 7% on Wednesday after it published a trading update for the six months ended October 31, 2020, showing revenue in the period grew 10% and adjusted profit before tax up 25%.

“The group is pleased to report a strong financial performance in the six months,” said Begbies Traynor.

“Group revenue in the period grew by c.10%, with adjusted profit before tax growing by c.25%, having absorbed the downside impact of lockdown in the first few months of the financial year.

“The group has maintained its strong financial position with net cash at 31 October 2020 of £0.7m (30 April 2020: net debt of £2.8m, 31 October 2019: net debt of £2.3m) and significant levels of headroom within our committed bank facilities.

“Overall, the board expects results for the full year to be at least in line with current market consensus, which would represent a further year of growth.”

Market consensus for adjusted profit before tax is £9.8 million, as compiled by Begbies Traynor.

Begbies Traynor Group executive chairman Ric Traynor said: “I am pleased to report a continuing strong financial performance in the first six months of the financial year, which is testament to how our teams continue to deliver excellent client service in a challenging environment.

“We anticipate continuing our recent financial track record of growth for the year as a whole, ensuring we are well placed to invest in our successful organic and acquisitive growth strategy.

“Overall, our medium-term outlook remains positive especially once the economy exits this current period of uncertainty.”