Full Year Trading Update and

RNS Number : 1315N

Begbies Traynor Group PLC

07 June 2010

 



Begbies Traynor Group plc

Full Year Trading Update and Board Change

Begbies Traynor Group plc (the "Group"), the specialist professional services consultancy, today issues a trading update for its financial year ended 30 April 2010, ahead of announcing its full year results on 8 July 2010.

Group Trading Update

Group results for continuing operations for the financial year ended 30 April 2010 are expected to be ahead of last year and in line with current consensus market expectations.  Exceptional costs of £0.8m are expected to be incurred, relating to costs associated with the recent refinancing and further restructuring, principally within the Group`s non-insolvency operations.

Insolvency

Work flow from our core activity of business insolvency, which accounts for over 80% of Group revenues, has grown significantly year on year. As anticipated in the announcement of the Group`s interim results on 21 January 2010, activity levels in the second half of the year ended 30 April 2010 were relatively flat compared to the first half.  This reflects a backdrop of the declining numbers of corporate insolvencies in the UK during the period.   The Government's insolvency statistics showed a 5% fall in the number of corporate insolvencies in the first calendar quarter of 2010 compared to the previous quarter, the fifth successive fall in national insolvency volumes, reflecting the effects of government support measures and monetary policy.

Tax & Other Segments

The Group`s tax consulting division returned to profitability in the second half, due principally to seasonally higher activity levels, together with cost reduction measures undertaken throughout the year.  Overall, as anticipated in our interim results, the Tax and Other segments are each expected to generate small losses for the financial year ended 30 April 2010.

Financing

The Group is in a strong financial position, having announced on 4 May 2010 new, unsecured banking facilities totalling £35.0m, comprising four year committed revolving credit facilities totalling £30.0m and a £5.0m overdraft facility.  Operating cash inflows in the second half were significantly improved over the first half and the Group`s net debt, excluding asset related finance, stood at £16.2m, leaving £18.8m of headroom within the new banking facilities. Total net debt, including all sources of finance, is £20.6m at 30 April 2010, consistent with management expectations.

Board Change

The Group announces that John Gittins, Chief Financial Officer, has accepted a position as Finance Director of NCC Group plc.  John will remain with the Group until 20 August 2010 following the Group's full year results, after which Nick Taylor, currently the Group`s financial controller, will take the position of acting Finance Director until a permanent appointment is made. The Board would like to thank John for his excellent contribution to the Group over the last three years and to wish him well in his new role.

Insolvency Market Outlook

The Board remains confident that the number of corporate insolvencies will rise as the economic cycle develops, consistent with historical patterns for insolvencies to lag the cycle.  However, in the short term, we anticipate a continuation of the work volumes seen in the second half of the year ended 30 April 2010.

A further update will be provided at the time of the final results announcement on 8 July 2010.

Ric Traynor, Executive Chairman of Begbies Traynor Group said:

"We are pleased to report that the Group's performance will be ahead of last year and that we have successfully concluded our refinancing, which will enable us to consider both organic investment and acquisition opportunities, principally in the insolvency and restructuring sector.

"We expect to see the benefit of our organic investments in insolvency, as well as the restructuring of our non-insolvency lines, in the current financial year."

Enquiries please contact:

Begbies Traynor Group PLC	0161 837 1700
Ric Traynor - Executive Chairman John Gittins - Chief Financial Officer
Shore Capital & Corporate Ltd	020 7408 4090
Andrew Raca
Hogarth	020 7357 9477
Reg Hoare / Katie Hunt

Information on Begbies Traynor Group can be accessed via the Group's website at www.begbies-traynorgroup.com

 

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