Begbies Traynor hails ‘strong financial performance’ as revenue surges
Corporate restructuring specialists Begbies Traynor hailed a year of “strong financial performance” as revenue rose 17 per cent.
Shares in the AIM-listed firm rose 0.6 per cent as markets opened.
The figures
For the full year, Begbies Traynor said that revenue rose from £60.1m to £70.5m, an increase of 17 per cent.
However, profit before tax slipped back slightly, falling from £3.3m to £2.9m in the 12 month period.
The business recovery firm slashed its net debt from £6m to £2.8m, while achieving adjusted earnings per share of 5.7p.
Begbies Traynor said it would pay a dividend of 2.8p, up from 2.6p last year.
Why it’s interesting
The firm said that it was anticipating an increase in potential work due to the coronavirus crisis, with the government’s various business protection schemes due to run out by the autumn.
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It said that it had not been too adversely affected by the pandemic, with its business advisory and financial recovery arms continuing to work as normal.
However, Begbies Traynor said that in its property advisory service, commercial property agency and valuations together with business sales agency were disrupted as the lockdown paused activities
What Begbies Traynor said
Executive chairman Ric Traynor said: “I am pleased to report a year of strong financial performance with growth in revenue and earnings delivered by our organic and acquisitive strategy.
“Our recovery and advisory teams start the new financial year in a strong position to deliver results ahead of last year.
“This reflects an increased order book, together with the benefit of our recent acquisitions and organic investment and an expectation of an increase in market insolvency levels once the short-term government support measures for the economy are removed”.