Begbies Traynor shares rose three per cent this morning as it announced revenues passed the £60m milestone for the first time last year.
The corporate restructuring specialist enjoyed rising pre-tax profit, amid a year in which it made four acquisitions. The firm benefited from an increase in insolvencies across the UK.
Adjusted profit before tax increased 27 per cent to £7.1m for the year ending 30 April. Revenue was £60.1m, a 14.7 per cent rise.
Net debt fell by one-fifth to £6m over the year. The firm put this down to “strong cash generation” over the year.
Begbies had a cash position of £4m at the end of the year. This was up on £3.5m at the same time in 2018.
Why it’s interesting
The Manchester-based restructuring firm said its cash generation was strong because of organic growth and acquisitions it had made over the year.
All business areas performed well, it said, with business recovery growing as a result of an increase in insolvencies nationally.
Profit rose at it’s advisory service from last year’s buyout Springboard Corporate Finance, a Birmingham-based investment bank and adviser.
What Begbies Traynor said
Chairman Ric Traynor said: “We have reported another year of strong financial performance, ahead of our original expectations, in which we have grown the business organically, completed four acquisitions and increased the dividend whilst reducing net debt.
“All areas of the group performed well, reflecting the benefits of recent organic investment, an increase in market activity and the good performance of recent acquisitions.”
He added that the firm was in a “better position than ever with multiple sources of potential growth supported by a strong financial platform”.
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