Begbies Traynor is expected to report results that are “comfortably ahead of market expectations” for the year ended 30 April 2021, with adjusted pre-tax profits set to increase to £11.5m from £9.2m the previous year.
Revenue is expected to also grow to £83.7m, up from £70.5m in 2020, as a result of a strong trading performance in the fourth quarter across both operational divisions.
The firm completed four acquisitions in 2021, with three in the financial year and one at the start of the new year, all of which helped “significantly increase” the scale of the group and its capabilities.
The group also finished the year with a strong operating cash flow in the final quarter with a net cash of £3m, which was “significantly better than expectations” and marginally increased from £2.8m the previous year.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “This strong financial performance is despite the impact of a suppressed insolvency market and the lockdown at the start of the financial year.
“Our transactional businesses have bounced back strongly, our organic investments have made good progress and we continue to believe that the number of insolvencies will increase as the government support measures are removed.”
He added: “The four acquisitions we have completed since the beginning of 2021 have significantly increased the scale of the group and its capabilities, enhancing the support and advice we provide to UK businesses, and leaving us well-placed to service the expected increase in the number of insolvencies.”