THE DROP in corporate collapses in Britain over the past year has dealt a blow to restructuring specialist Begbies Traynor, which yesterday posted an 11.4 per cent drop in ongoing revenues to £51.1m.
Continuing pre-tax profits halved to £2.4m in the year to the end of April. To combat the shrinking market, Begbies has cut costs and plans to make small acquisitions in the coming year.
Executive chairman Ric Traynor said low interest rates are aiding struggling companies that would have otherwise gone to the wall.
“Typically there are more insolvencies as we exit recession as there is more overtrading, there are business owners getting rid of past liabilities, there are banks that want to take money out of non-performing loans,” he told City A.M..
“That’s all going to happen at some point, but we’ve no evidence that it’s starting.”