RECOVERY SPECIALIST RAISES EXPECTATIONS AFTER MULTIPLE INSOLVENCIES

Begbies Traynor has raised expectations for its full-year results after a surge in insolvencies.

The Manchester-headquartered group, which has offices across the UK, said it now forecasts its revenue to be around 11% higher at about £122m for the 12 months to April 30, 2023. Its pre-tax profits are also set to be about 16% higher at around £20.7m for the year.

In a statement issued to the London Stock Exchange, the group said it has seen a “good momentum” in new insolvency appointments as well as a “significant” increase in higher value cases.

A rise in liquidations and administrations contributed to the group’s improved financial performance while it added that the “challenges for UK businesses are expected to continue to support growth in the insolvency market”.

Among many high-profile administrations Begbies Traynor was involved in during the financial year was that of Paperchase, which was then rescued by Tesco in January.

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.

Our strong financial position leaves us well placed to continue to invest in the business, both organically and through acquisitions, to continue building our scale and range of complementary services.”

He added: “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.”