Begbies Traynor Group plc, the Manchester-based business recovery and financial advisory firm, said it is looking at ways to lessen the impact of higher national insurance contributions for employers. 

“We are reviewing options to mitigate the impact where possible,” said Begbies in its half-year financial update on Monday. 

It said the national insurance changes introduced in the new Labour government’s budget in October would increase its annual employment costs by about £1.25 million, starting in April next year. 

 The company said guidance for the current year to 30 April 2025 remains unchanged. Analysts are expecting adjusted profit before tax of £23 million to £24 million. 

For the latest six months, the company said Revenue and adjusted profit before tax increased by about 16%, with a good balance of organic and acquired growth. 

Ric Traynor, Executive Chairman of Begbies Traynor Group plc, said: “We have made a very good start to the year with double digit growth in revenue and profits driven by positive momentum across the group. This gives us confidence that we will deliver market expectations for the year as a whole.”

“Additional headwinds for UK business from increased employment costs and the prospect of higher for longer interest rates are likely to extend the period of elevated insolvency levels, increasing the need for advice and support from our insolvency and business recovery professionals.”