Bankruptcy firm Begbies Traynor hails a “great start” to the financial year as business disruptions reach unprecedented levels
- The Group is confident of achieving its full-year adjusted profit before tax target
- Recent appointments included roofing company Avonside Group
- Business insolvencies in England and Wales rose 81% in the second quarter
Begbies Traynor has reported a “good start” to the financial year after an increase in the number of bankruptcies among larger and medium-sized companies.
Ahead of its annual general meeting today, the corporate restructuring specialist announced that it had acted in line with guidance for the three months to the end of July, thanks to strong activity in its two business segments.
Recent appointments included the Avonside Group, Britain’s largest roofing company, whose collapse followed a period of heavy expansion, accounting problems and disruption resulting from the pandemic.
Strong performance: Begbies Traynor, a corporate restructuring specialist, said it acted in line with guidance in the three months to the end of July
Begbies Traynor managed to save 79 jobs by selling nine of the company’s roofing divisions, but was forced to close the remaining roofing divisions and plumbing division.
Other appointments included Silverbond Enterprises, the former operator of Park Lane Casino in London’s Mayfair, and short-term holiday rental operator Houset.
Begbies Traynor previously predicted it would benefit from a surge in companies falling into administration as Covid-related public aid programs wind down and restrictions on creditor action are lifted.
Voluntary liquidations of businesses in England and Wales from April to June reached their highest quarterly level in more than six decades, according to figures from the Bankruptcy Service.
As a result, the total number of corporate insolvencies rose by 81 percent from 3,105 to 5,629 in the reporting period compared to the previous year.
Due to rising energy prices, interest rate hikes and weaker economic growth, there is a high probability that the number of bankruptcies could remain high in the coming year.
Two months ago, Begbies Traynor CEO Ric Traynor said he would hire up to 100 additional staff by the end of April in anticipation of a surge in corporate bankruptcies.
Given that outlook, the Manchester-based company announced today that it is confident of posting full-year adjusted pre-tax profit of between £19.7m and £20.6m.
“Overall, the group remains in a strong position,” the company added.
‘Our scale, capabilities and breadth of expertise give us the ability to continue to support our customers as they meet the challenges of the year ahead.’
In the last four years, Begbies Traynor’s annual turnover has more than doubled from £52m to £110m and adjusted profit before tax has increased from £5.6m to £17.8m.
Shares in Begbies Traynor rose 2.3 percent to 144.2 pence late Thursday afternoon, meaning its value is up over 23 percent over the past six months.
