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Begbies Traynor profit soars in H1

Begbies Traynor has announced that pre-tax profit grew by around 25% in the six months ended 31 October 2020, following a “strong” financial performance. 

In the same period, group revenue grew by around 10%, after the group “absorbed the downside impact of lockdown in the first few months of the financial year”. 

Its business recovery and financial advisory division also “performed well” in the first half, despite the subdued insolvency market resulting from the Government’s Covid-19 financial support measures.  

It has also increased its market share of new insolvency appointments in the period, which together with an increase in average case size, has partially mitigated the weakness in the wider market. 

According to Begbies Traynor, these developments have enabled the division to “record” growth in revenue and profits against the comparative period.

Its property advisory and transactional services division has also delivered a “robust” performance in the period, once again absorbing the impact of the lockdown in the first few months of our financial year. 

Following this, the division has generated “solid” operating margins with “strong” performance from its building consultancy business, which partially offset the downside from service lines which were impacted by the spring lockdown. 

In its latest update, the consultancy group added it has maintained its “strong” financial position, with net cash of £0.7m at 31 October 2020 of £0.7m, following a net debt of £2.8m reported at 30 April 2020.

Looking ahead, the board expects results for the full year to be “at least” in line with current market consensus, which would represent a further year of growth. 

Ric Traynor, executive chairman of Begbies Traynor Group, said: “I am pleased to report a continuing strong financial performance in the first six months of the financial year, which is testament to how our teams continue to deliver excellent client service in a challenging environment. 

“We anticipate continuing our recent financial track record of growth for the year as a whole, ensuring we are well placed to invest in our successful organic and acquisitive growth strategy. Overall, our medium-term outlook remains positive especially once the economy exits this current period of uncertainty.”

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