Begbies sees falling insolvency revenues in first half

12 December 2012

Leading insolvency firm Begbies Traynor reports sales down 11.2% in its first half and net profits fell too.Pre-tax profit reduced to £2m from £3.4m before.Commenting on the results, Executive Chairman Ric Traynor said: "Challenging market conditions have persisted with lower levels of activity in the insolvency market over the summer months." "Overall, this led to a group performance with lower revenues and profits than the comparative period. In spite of this, the business remained profitable and continues to generate good operating margins through on-going management of the group's cost base." Begbies said it expects UK insolvencies to remain broadly stable. With sales down 11% in the first half it expects a rise in revenues in half 2 to deliver profits in line with forecast. Looking ahead the group added: "We anticipate an improvement in activity in the second half of the financial year during the traditionally busier winter months. Given this, we currently anticipate that the group's performance for the year as a whole will be broadly in line with last year." Net debt stood at £18.3m from £20.1m in April this year and down from £27.3m the same time last year.