Begbies Traynor has announced that revenue rose by 11% in the half-year ended 31 October 2020, amid first-time contributions from prior year acquisitions as well as a “robust” organic performance in the period.
The firm said that profit rose by 25% in the period, with statutory profit-before-tax reflecting increased non-cash acquisition accounting charges.
It comes as all areas of the business reportedly “performed well”. Its business recovery and financial advisory arm saw good returns from acquisitions and organic investment, while its property advisory and transactional services welcomed recovery after it was previously impacted by lockdown in the spring.
In its latest trading update, the group said it has maintained a “strong” financial position and has “significant” levels of headroom within its committed bank facilities, which has enabled a continued investment in organic and acquisition opportunities.
The group said it has “absorbed” the negative impact of lockdown in the first few months of the financial year, as well as the effects of a “subdued” insolvency market due to the government’s financial support measures for businesses.
Nonetheless, it predicts an increase in market insolvency levels once short-term support measures for the economy are removed.
In addition, results for the full year are now expected to be “at least” in line with current market consensus, which would represent a further year of growth for the business.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “I am pleased to report a strong financial performance in the period, maintaining our recent track record of growing revenue and adjusted earnings.
“Despite the challenges of lockdowns this year, and a subdued insolvency market, we expect our results for the full year will be at least in line with the current market consensus, which would represent a further year of growth.”
He added: “With the benefit of our strong financial position we continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions, and we remain confident in our outlook for the current and future years. We will provide an update on third quarter trading in early March 2021.”