Begbies Traynor delivers 'strong financial performance' in H1

Corporate restructuring firm Begbies Traynor said on Monday that it had delivered a "strong financial performance" throughout H1, with double-digit revenue and profit growth.

Begbies Traynor said revenue and adjusted pre-tax profits had grown roughly 16% during the six months ended 31 October, with a "good balance" of organic and acquired growth. The London-listed firm also noted that free cash flow had increased by approximately 8%.

Net debt, on the other hand, ballooned from £1.4m at the start of the trading year to £3.8m at the end of the half, reflecting acquisition earn-out payments, share buybacks and dividends.

Looking forward, Begibies Traynor said it was "confident of delivering market expectations for the full year", which would extend its ten-year financial track record of profitably growing the business.

Chairman Ric Traynor said: "We have made a very good start to the year with double digit growth in revenue and profits driven by positive momentum across the group. This gives us confidence that we will deliver market expectations for the year as a whole.

"Additional headwinds for UK business from increased employment costs and the prospect of higher for longer interest rates are likely to extend the period of elevated insolvency levels, increasing the need for advice and support from our insolvency and business recovery professionals."

As of 0915 GMT, Begbies Traynor shares were up 0.16% at 93.75p.

Reporting by Iain Gilbert at Sharecast.com