Begbies first-half revenue up 11% to £37m

Manchester-based corporate rescue firm Begbies Traynor Group plc said on Tuesday its revenue in the half year ended October 31, 2020, rose 11% to £37.5 million. 

Begbies Traynor said adjusted profit before tax increased 25% to £5 million.

Statutory profit before tax was £500,000, down from £1.9 million, “reflecting an increase in transaction costs relating to prior year acquisitions to £3.1m (2019: £0.7m) and amortisation of £1.5m (2019: £1.4m).”

The firm declared an interim dividend of 1p, an increase of 11%, “which builds on the increases over the three previous years and reflects our confidence in sustaining our financial track record of earnings growth.”

The company added: “We remain committed to a long-term progressive dividend policy which takes account of the market outlook, earnings growth and investment plans.”

In its outlook, Begbies Traynor said: “Following a strong financial performance in the first half of the year, the board expects results for the full year will be at least in line with the current market consensus, which would represent a further year of growth.

“As we have previously reported, the Government’s financial support measures have helped many companies to continue trading despite the extreme economic downturn caused by the pandemic, and these measures have resulted in a reduction in the number of UK insolvencies since March 2020.

“We expect that as the support measures are removed there will be a significant increase in corporate distress, which is likely to lead to increased insolvencies.

“Our recovery and advisory teams are well positioned despite this current market weakness.

“We have an increased order book of committed future insolvency revenue, a strong market position and reputation, and an expectation of an increase in market insolvency levels once the short-term support measures for the economy are removed. 

“We are encouraged by the performance of our property advisory and transactional service lines in a challenging economic environment and the recovery of performance following the uncertainties and challenges of the spring lockdown.

“We anticipate the division will maintain current levels of performance in spite of the current challenging environment.

“With the benefit of our strong financial position we continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions, and we remain confident in our outlook for the current and future years.

“We will provide an update on third quarter trading in early March 2021.”