Begbies expects £83m revenue; shares up 8%

Shares of Manchester-based corporate rescue firm Begbies Traynor Group plc rose about 8% on Thursday after it published an update on trading for its financial year ended April 30, 2021.

Begbies Traynor said its results are expected to be “comfortably ahead of market expectation” following a strong performance in the fourth quarter.

The firm said revenue is expected to be £83.7 million, up from £70.5 million, and adjusted profit before tax is expected to be about £11.5 million, up from £9.2 million.

The current range of analyst forecasts is for revenue of between £77.1 million and £78.5 million, and for adjusted profit before tax of between £10.5 million and £11.1 million.

Begbies Traynor executive chairman Ric Traynor said: “We expect our results for the full year will be comfortably ahead of market expectations. 

“This will represent another year of growth in revenue and profits, whilst investing in the group to expand the range and depth of our service lines.

“This strong financial performance is despite the impact of a suppressed insolvency market and the lockdown at the start of the financial year.

“Our transactional businesses have bounced back strongly, our organic investments have made good progress and we continue to believe that the number of insolvencies will increase as the government support measures are removed.

“The four acquisitions we have completed since the beginning of 2021 have significantly increased the scale of the group and its capabilities, enhancing the support and advice we provide to UK businesses, and leaving us well-placed to service the expected increase in the number of insolvencies.

“With the benefit of these recent acquisitions and our organic growth opportunities, the group is well positioned to deliver the anticipated material growth in earnings in the new financial year.”