Begbies Traynor makes 'good start' to new financial year

Consultancy and business service provider Begbies Traynor said in an update on Thursday that it had made a “good start” to the new financial year.

The AIM-traded firm, which was holding its annual general meeting, said trading in the first quarter ended 31 July was in line with expectations, with “encouraging” activity levels across both of its operating divisions.

Executive chairman Ric Traynor said the level of new insolvency appointments was still increasing year-on-year, with an increasing number of larger, mid-market insolvency and restructuring cases emerging as a result of the increased activity in administrations and the company’s expanded London office and offshore practice.

“Notable recent appointments include the ongoing administrations of Avonside Group, the largest roofing contractor in the UK, and Silverbond Enterprises, the former operator of the Park Lane Casino in London,” Traynor told shareholders.

“In addition, we have advised on the first SME court-sanctioned restructuring plan, enabled by the Corporate Insolvency and Governance Act 2020, of Houst - the short-term holiday lettings operator.

“This follows our previous use of this new legislation on the mid-market Amicus finance restructuring in 2021.”

At the current, early stage, of the financial year, Ric Traynor said the company remained confident in delivering market expectations for the full year.

“We have completed two acquisitions in the new financial year - Mantra Capital, the London-based property finance brokerage, in July; and the chartered surveyors practice, Budworth Hardcastle, in June.

“The integration of both businesses is underway and progressing in line with our expectations.

“Overall, the group remains in a strong position - our scale, capabilities and breadth of expertise provide us with the ability to continue to assist our clients as they face the challenges of the forthcoming year.”

Begbies Traynor said it would next update on current trading with its half-year results in December.

At 1202 BST, shares in Begbies Traynor Group were up 2.08% at 143.93p.

Reporting by Josh White at Sharecast.com.