Begbies Traynor profit boosted by higher number of business failures

Advisory firm Begbies Traynor has reported a sharp rise in their annual profit and revenue due to a higher number of business failures.

For the year to 30 April revenue was £60.1m compared to £52.5m the previous year, and pre-tax profit rose by more than 50% to £3.5m.

All areas of the business did well as the recovery division saw an increase in insolvency nationally, and investment and acquisition also supported growth.

Underlying number of corporate insolvencies was up by 10% for 2018 from the previous calendar year to 16,106.

Executive chairman Ric Traynor said, “We have reported another year of strong financial performance, ahead of our original expectations, in which we have grown the business organically, completed four acquisitions and increased the dividend whilst reducing net debt.

“All areas of the group performed well, reflecting the benefits of recent organic investment, an increase in market activity and the good performance of recent acquisitions.

“Looking ahead, we are better positioned than ever with multiple sources of potential growth supported by a strong financial platform.

“There is currently uncertainty in the UK economy as a result of the Brexit process, but with a combination of our counter-cyclical activities together with our breadth of services, we are well placed to continue our track record of growth in the new financial year and beyond.”