Begbies profit soars as bankruptcies rise

21st Jan 2010 07:38

Financial adviser Begbies Traynor said interim pre-tax profit soared 32% as the number of insolvencies increased but it expects full year results to be slightly below current market forecasts after a weak performance at its tax practice. The corporate distress specialist said adjusted pre-tax profit rose to £4.3m for the six months ended 31 October 2009 from £3.3m the year before. Revenue from continuing operation increased by 21% to £34.2m as the recession took its toll on businesses.Looking ahead the group said it expects more businesses to go under once government support measures are relaxed.The group said it tax division is expected to return to profitability in the second half of the current financial year but warned that weakness in the division weighed on the group's full year results.Chairman Ric Traynor said, "The level of potential growth in insolvency for the year is now not expected to offset fully the weaker than anticipated performance of the tax practice. Accordingly, the board anticipates results for the year as a whole will be slightly below current consensus market expectations."