Begbies Traynor, the insolvency practitioners, is seeing weak demand as low finance costs help keep UK companies from going bust.
In a trading update on its third quarter ending January 31st, the company says profits are in line with the comparable period of 2010 without providing specific figures. Begbies adds though that "the outcome for the year will be dependent on performance in the final quarter, historically a busy trading period."
The insolvency division is described as posting improved profits and margin on the back of cost savings. However, today's update notes that "activity levels in the UK insolvency market remain subdued, due in part to the continuation of the benign financing environment of low interest rates".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The group is shedding jobs to keep costs low, with the headcount down 501 at the end of April 2011 to 470 at the end of January.
The Global Risk Partners division has struggled to replace large contracts that have come to an end and is expected to post a small loss in the second half of this year.
Shares in Begbies Traynor had fallen 0.7% by 09:00. Over the last 12 months the stock has dropped 30%.
BS
-
Could your family be at risk of an unexpected tax bill? How to keep your loved ones in the loopMany families are out of the loop when it comes to planning the financial aspects of both retirement and inheritance
-
Rightmove: Glut of homes for sale in southern England drives asking price dropAsking prices are 0.1% lower than a year ago, according to the property website, driven by challenges in affordability-stretched London and the south
