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Profits rise at Begbies Traynor despite pandemic

Begbies Traynor Group has revealed that annual revenue is expected to be £70m in the year ended 30 April 2020, up from £60.1m the year prior. 

In its latest trading update, the business recovery, financial advisory and property services consultancy predicted full-year results will be “broadly in line” with expectations for the year.  

Adjusted profit before tax is expected to increase 30% to £9.2m, up from the £7m reported in 2019, having absorbed a £0.6m impact of the lockdown in the last six weeks of the financial year.

Insolvency appointments across the firm also increased in the period, and the firm claims it continues to “take the largest number of corporate insolvency appointments in the UK”. Its advisory team also “performed well” with an increase in corporate finance transaction completions throughout the year.

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Nonetheless, several of its property service lines were impacted by reduced activity levels in light of the ongoing pandemic, which resulted in a reduction in profits for the year of £0.6m.

The pandemic also had a “mixed impact” across its services, with its commercial property valuations and business sales agency teams experiencing reduced activity levels in April following the lockdown. 

Despite the impact of the pandemic on several property service lines, Begbies Traynor still anticipates “progressive increases” in the number of insolvencies it will lead. 

The group also said that it is in a “strong financial position”, with undrawn, committed borrowing facilities of £15m providing “significant liquidity” for the new financial year.

Ric Traynor, executive chairman of Begbies Traynor Group, said: “The group has delivered a strong financial performance with increased revenue and profitability, despite the disruption in the last few weeks of the financial year. 

“This is credit to our partners and staff in these challenging and uncertain times, where they have adapted rapidly to remote working.”

He added: “Looking ahead we remain well placed, given our strong financial position, the likely impact of the Covid-19 pandemic on the UK economy and the counter-cyclical focus of our business.”

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