Begbies Traynor hit by less insolvencies

AIM-listed insolvency consultancy Begbies Traynor said revenues for the half year were hurt by a subdued summer insolvency market.

Adjusted pre-tax profit fell to £3.2m for the six months ended October 31st 2012 from £4.1m the year before. Revenue for the period fell to £26.1m from £29.4m previously.

Pre-tax profit reduced to £2m from £3.4m before while adjusted basic and diluted earnings per share from continuing operations fell to 2.5p from 3.1p in 2011.

Begbies has recommended an interim dividend of 0.6p unchanged from a year earlier.

Commenting on the results, Executive Chairman Ric Traynor said: "Challenging market conditions have persisted with lower levels of activity in the insolvency market over the summer months."

"Overall, this led to a group performance with lower revenues and profits than the comparative period. In spite of this, the business remains profitable and continues to generate good operating margins through on-going management of the group's cost base."

Begbies said it expects UK corporate insolvencies to remain broadly stable.

Looking ahead the group added: "We anticipate an improvement in activity in the second half of the financial year during the traditionally busier winter months. Given this, we currently anticipate that the group's performance for the year as a whole will be broadly in line with last year."

Net debt stood at £18.3m from £20.1m in April this year and down from £27.3m the same time last year.

CJ