Begbies Traynor's revenues climb on new acquisitions

Begbies Traynor on Wednesday reported an increase in its half-year revenues and adjusted profit before tax after the company invested in new acquisitions and new employees.

For the six-month period ended 31 October, the business recovery, financial advisory and property services consultancy’s sales stood at £28m, up 8% compared to the same period last year, while adjusted profit before tax was up 10% to £3.2m.

The jump was driven by an initial contribution from newly acquired Springboard Corporate Finance and CJM Asset Management, as well as the increase in workforce for both its Financial Performance and Property Services divisions.

However, non-adjusted profit before tax fell by 38% to £0.6m, reflecting increased non-cash charges in relation to prior year acquisitions.

Ric Traynor, executive chairman of Begbies Traynor, said: "The group has delivered a good financial performance, ahead of a strong comparative period and consistent with our expectations for the year as a whole, as we have started to see the initial benefits of investments in prior periods."

The AIM traded company had cash and cash equivalents of £3.7m at 31 October, down from £8.1m at the same point last year.

"We remain confident of delivering increased revenue and earnings in line with current market expectations for the full year. We anticipate a second half weighting to our results, reflecting the completion of current contingent fee engagements together with higher activity levels," said Traynor.

Begbies Traynor’s shares were down 2.84% at 66.85p at 0911 GMT.