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Begbies Traynor has welcomed a year of growth in FY23 with results that were ahead of market expectations, as revenues rose by 11% to £121.8m, with the group benefiting from rising insolvencies in the period.
In the year ended 30 April 2023, pre-tax profits also increased, rising from £4m in FY22 to £6m this year.
According to the firm, double-digit revenue and profit growth across both operating divisions was driven by increased insolvency appointments and its enhanced reputation for mid-market insolvencies, as well as a contribution from acquisitions in finance broking and property advisory.
In addition, the firm said there was organic growth from property service lines, reflecting the “resilient” nature of our services in a challenging marketplace.
In light of these results, its board has recommended a 9% increase in the total dividend for the year to 3.8p, the sixth consecutive year of dividend growth.
Looking ahead, the group said it has started the new financial year in a strong position and is “confident” of a further year of growth in line with market expectations.
The firm said it has a strong order book of insolvency revenue, up 19% in the year, driven by a continued increase in insolvency market volumes.
It added that it is well placed to further increase exposure to larger, more complex insolvency appointments with its 11% share of the administration market ranking it second largest nationally by volume.
Ric Traynor, chairman of Begbies Traynor, said: “We have reported another successful year of continued growth, with reported results ahead of original market expectations and increased our dividend by 9%.
“We have a proven growth strategy which, over the five year period between 2019 and 2023, has doubled revenue and tripled adjusted profit before tax, from a combination of organic growth and acquisitions. This growth has been delivered across insolvency and our full range of advisory and transactional services.”
He added: “We have started our new financial year confident in our outlook. The increased scale of the group with complementary professional services and an enhanced client base provides a strong platform for us to continue delivering growth. With 80% of income generated from counter-cyclical and defensive activities, we are well-positioned in the current challenging economic environment.
“Our strong balance sheet and cash generation underpin our capacity to deliver organic growth initiatives and progress our pipeline of acquisitions, thereby continuing our track record of growth.”
