BUSINESS recovery and advisory firm Begbies Traynor suffered a fall in annual profits after an improvement in the UK economy led to the lowest level of corporate insolvencies since the financial crisis.
Adjusted profits before tax fell by a third to £3.6m in the year to 30 April compared with £5.4m the previous year.
Total revenue rose to £45.4m from £44.1m last time thanks to recent acquisitions. However, revenue at the company’s insolvency and restructuring business fell by 7.3 per cent to £40.9m.
Begbies said that the number of UK corporate insolvencies fell by 14 per cent to 16,380 in the year to 31 March, putting pressure on fees. As a result it cut 37 jobs across the division to 354 in a bid to save costs.
However chairman Ric Traynor said that he remained “confident of the division’s long-term performance”.