Begbies Traynor sees double-digit growth in first quarter

Business recovery, financial and property services provider Begbies Traynor said on Thursday that it achieved “double digit” growth in revenue and profit in its first quarter, as the result of recent acquisitions, as well as the rebound in economic activity.

The AIM-traded firm, which was holding its annual general meeting, said at the current, early stage of the financial year, it was “confident” in delivering market expectations for the full year.

Executive chairman Ric Traynor said that in business recovery and financial advisory, the acquisitions completed last year, of CVR Global and David Rubin & Partners, were performing well, in line with expectations.

“As reported in July, at the time of the group's final results, integration activity has been completed as planned,” he said.

“As we have previously reported, the insolvency market has been suppressed over the last 18 months due to government support measures.

“However, since May 2021 the Insolvency Service has reported month-on-month increases in insolvency appointments nationally.”

Traynor said the company expected that trajectory would continue in the final quarter of the calendar year - the second half of the firm’s financial year - as support measures were progressively removed.

“The MAF Finance Group acquisition, completed in May 2021, is also performing well and in line with expectations, with synergy and cross selling opportunities being identified as the business is integrated into the group.

“Our property advisory and transactional services division is performing well, achieving year on year growth in revenue and profit from a more normalised trading performance compared to the lockdown impacted comparative period.

“The HNG chartered surveyors' acquisition, completed in February, is performing in line with expectations with integration on target for completion during the first half of our financial year.”

Ric Traynor said the company was “delighted” with the support received from both new and existing institutional and retail shareholders for the company’s share placing in March.

He said the fundraise of £22m was “significantly oversubscribed”, providing funding for both the DRP acquisition and future investments.

“Overall, the group remains in a very strong position,” he said.

“Our increased scale and capabilities provide us with the ability to continue to assist UK businesses as the economy recovers from the challenges of the pandemic.

“We will next update on current trading with our half year results, which are due to be released in December 2021.”

At 1223 BST, shares in Begbies Traynor were up 7.09% at 142p.