Mon, 11 Dec 2023 | BUSINESS NEWS
Professional services firm Begbies Traynor Group has said it will continue to target acquisitions and expects activity levels in insolvencies, its largest service line, to increase further amid ongoing high interest rates and inflation.
The firm, which is one of the UK’s largest insolvency practitioners, has been targeting organic and acquisitive expansion this year amid soaring UK insolvency levels. In its latest half-year results, the company has reported double digit growth in revenues and adjusted pre-tax profits.
In the six months ending October 31 2023, group revenue was up 13 per cent to £65.9 million, while adjusted pre-tax profits increased 10 per cent to £9.9 million. Statutory profit before tax, meanwhile, fell from £5 million to £3 million, reflecting an increase in non-cash acquisition accounting charges.
Based on this performance, Begbies has said it is confident of achieving its current market expectations for the full year of between £21.9 million and £22.5 million in adjusted pre-tax profit. UK insolvency levels are widely forecast to increase further and Begbies’ insolvency operation expects to generate growth during the second half of the year and thereafter.
Begbies has said that integration of the three acquisitions it has completed since the beginning of the financial year is proceeding well and that initial trading performance is in line with its expectations. The company stated that, as a result of its strong financial position, it is well placed for further organic and acquisitive growth.
Begbies Traynor Executive Chairman Ric Traynor commented: "Our insolvency team has maintained its market-leading position (by volume) in a growing marketplace nationally, with an increase in insolvency numbers reflecting the current interest rate and inflation environment; whilst our advisory and transactional services teams had a successful six months, reflecting the breadth of advice we provide to our clients, which continue to provide a solid platform for growth.”
"Our broad range of services, diversified client base, organic growth initiatives and pipeline of acquisition opportunities, combined with increasing counter-cyclical activity, leaves us confident of continuing to build upon our strong track record in the current year and beyond."
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