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.

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

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

UK House Prices Set To Fall? It’s Not So Simple
House prices

UK House Prices Set To Fall? It’s Not So Simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Why now is a good time to buy diamond miners
Commodities

Why now is a good time to buy diamond miners

Demand for the gems is set to outstrip supply, making it a good time to buy miners, says David J. Stevenson.
12 Aug 2022