Begbies Traynor delivers 'further growth' in H1

Professional services consultancy Begbies Traynor said on Monday that it had delivered "further growth" in the first half of the trading year, leaving it "confident" of delivering full-year expectations.

Begbies Traynor said revenue and adjusted operating profits were both expected to increase by roughly 13%, with a good mix of organic and acquired growth, while adjusted pre-tax profits were pegged to rise approximately 10%, having absorbed increased finance costs.

The AIM-listed firm stated that it was in a "positive cash position", with net cash of £1.1m at 31 October, resulting from "strong free cash flow" in the half, a marked turnaround from last year's net debt position of £2.4m.

Begbies added that its insolvency teams "remain busy", with increased year-on-year activity levels, while its financial advisory unit was impacted by reduced M&A activity in the period, as expected. However, this was said to have been somewhat mitigated by advice provided on refinancing and restructuring solutions.

Chief executive Richard Traynor said: "We have had a good half-year with encouraging activity levels across the group, resulting in double-digit growth in both revenue and profitability. At the same time, we have continued to invest for future growth, having completed three acquisitions in the financial year to date in line with our strategy to enhance our service offering and regional coverage.

"We remain confident of delivering market expectations* for the full year, extending our strong financial track record of growth. With 80% of income generated from counter-cyclical and defensive activities, and a strong balance sheet, we remain well-positioned to continue investing in and growing the business."

As of 1050 GMT, Begbies Traynor shares were down 1.16% at 128.50p.

Reporting by Iain Gilbert at Sharecast.com