Begbies Traynor experiences quiet summer

AIM-listed insolvency consultancy Begbies Traynor has said that trading in the second quarter has been quiet, reflecting usual seasonal trade patterns as well as continuing subdued market conditions.

In the group's annual general meeting on Monday, Executive Chairman Ric Traynor will announce that the company has seen a 12% decline in the number of insolvencies from the first quarter (5,772) to the second (5,065) and a 8% fall year-on-year.

The firm, which calls itself a "business recovery practice", said that the performance in its Global Risk Partners division has "stabilised" after the ongoing restructuring following a 31% drop in revenues in the previous financial year.

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"The group continues to focus on managing its cost base, which will incur exceptional restructuring costs of £1m in the period," Begbies announced.

The company's expectations for the full year remain the same, saying that the results will be dependent on trading activities in its traditionally busies months.

Traynor will say: "Having successfully reshaped the group over the last year, we remain committed to growing our cash-generative and profitable business, both organically and through carefully targeted acquisitions which enhance this core business."