Begbies Traynor FY results seen ahead of views amid rise in insolvencies

22nd May 2023 09:04

(Sharecast News) - Begbies Traynor said on Monday that full-year results were set to be ahead of market expectations as it benefits from a rise in business insolvencies.

In an update for the year to 30 April, the company said it expects revenue to be up 11% at around £122m and for adjusted pre-tax profit to increase by 16% to £20.7. This compares to market expectations of £120.6m and £20.3m, respectively.

Begbies highlighted good momentum in new insolvency appointments in the year and a significant increase in higher value cases. The group said its "market-leading" insolvency positions were maintained. It has a 13% share of the overall market and is ranked first nationally, and an 11% share of the administration market and is ranked second nationally.

The company said challenges for UK businesses are expected to continue to support growth in the insolvency market.

Executive chairman Ric Traynor said: "We performed strongly in the financial year, with results ahead of market expectations, aided by our increased scale and enhanced reputation in mid-market insolvency.

"We have further developed our range of services, extending both our financial advisory business and property advisory services through earnings accretive acquisitions principally funded by strong cash generation.

"We have started the new year confident in our outlook for a further year of growth. Our insolvency team will benefit from their recent insolvency appointments, together with anticipated further growth in the insolvency market. We continue to identify growth opportunities for our advisory and property teams, including the recently announced acquisition of Banks Long & Co."