Bankruptcy experts expect Begbie’s Trainer to increase in the coming months as its profit storms rise
- Begbies Traynor saw its profit and revenue jump in the first half
- The Manchester-based group expects bankruptcy numbers to rise
- Many businesses are getting hammered with low footfall and spiraling costs
Begbies Traynor saw its revenue and profit jump from six months to 31 October, new figures show.
The Manchester-based group is anticipating an increase in the number of businesses entering bankruptcy in the second half of its financial year.
The business recovery, financial advisory and property services consulting firm reported revenues of about £ 52 million, up from £ 37.5 million a year ago.
Predictions: Begbies Trainer expects the company’s bankruptcy numbers to increase
Adjusted pre-tax profits increased to £ 8 million from the group’s acquisitions in January.
Rick Traynor, executive chairman of Begbies Traynor, said: ‘I am pleased to report strong financial performance in the first six months of our fiscal year, which is testament to the benefits and consolidation of our recent acquisitions.
‘We have the confidence to deliver market expectations for the full year, which represents a significant growth year and ensure that we are well positioned to continue investing in our successful growth strategy.’
In its update today, the group added: ‘As we anticipate an increase in bankruptcy activity for the remainder of our fiscal year (up to 30 April 2022), we expect our results to weigh on the second half.
‘Overall, we are confident of delivering market expectations for the full year, which represents a significant growth year.
‘However, since May 2021, the Bankruptcy Service has reported a month-on-month increase in bankruptcy appointments nationally as these support measures have been removed.
The increase to date has been predominantly in bankruptcy (which usually represents the bankruptcy of smaller companies), where the proportion of appointments has now returned to pre-epidemic levels.
‘We have increased our share in this market segment by year.
Although the number of regimes (usually involving larger and more complex indications) has increased in recent months, they are currently significantly below pre-epidemic levels. ‘
The group said it had a net cash flow of £ 1.2 million as of October 31, up from £ 700,000 at the same time a year ago.
Shares in the group are currently down 0.22 per cent or 0.30p to 138.50p. A year ago, the share price was 90.80p.