Business recovery and property services consultancy Begbies Traynor today revealed profit before tax of £0.6m for its six months ended 31 October 2015, plunging from £1.5m for the same period last year.
However, revenue for the company increased to £25.5m for the period, up from £20.8m in 2014.
The company noted that the financial performance was in line with expectations, particularly given the challenging market, pointing out that the number of UK corporate insolvencies have fallen 10 per cent year-on-year.
Share price for the company fell 3.5 per cent, reaching a low of 41p, shortly after the market opened.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “I am pleased to report a solid financial performance in the period with results in line with our expectations.”
However, Traynor added: “With no indications of a change to the benign financing environment in the UK which would cause an increase in insolvency levels, we remain cautious about activity levels in the insolvency division in the near term and will continue to focus on managing costs accordingly.”
The company has also recently made some notable acquisitions, including insolvency practice The P&A Partnership at the end of September and business property valuation consultancy Taylors at the beginning of December, which it believes will help to strengthen the group. In addition, Eddisons, which is the chartered surveyors firm acquired by Begbies Traynor last December, had performed as expected.