Insolvency specialist Begbies Traynor said it expects to see demand for its corporate recovery services swell next year as recession begins to bite, after it posted a £2.3m rise in pre-tax profits in its first half of trading today.
In its half year results, the London-listed professional services firm said it had a “strong” start to year as revenues jumped to £58.5m from £52.3m last year, and pre-tax profits hit £5m.
Bosses now said they were set for further growth in the months ahead as a looming recession sparks an increase in bankruptcies.
“We expect continued growth from business recovery and financial advisory, given its increased order book, higher level of enquiries and increasing economic headwinds,” said Ric Traynor, executive chairman of the firm.
“We are also confident in the prospects for property advisory and transactional services, reflecting its resilient income streams, continuing flow of new instructions and potential to continue developing its mix of services.”
He added that the firm had already bumped up both the number and value of its insolvency appointments across liquidations and higher-value administrations in the first six months of the year, as businesses began to come under strain from the economic downturn.
Insolvencies surged in 12 months to the end of September as business collapsed under the fallout of the pandemic and soaring energy prices, hitting 20,731 in total – 23 per cent higher than in the comparable pre-pandemic period.