Third Quarter Trading Update

RNS Number : 9559G

Begbies Traynor Group PLC

10 March 2015

 



10 March 2015

Begbies Traynor Group plc

Third Quarter Trading Update

Begbies Traynor Group plc ("'the Group"), the business recovery and property services consultancy, today issues a trading update for its third quarter ended 31 January 2015 ("the period"). 

Trading in the period, including the post-acquisition performance of the Eddisons business, was in line with the Board's expectations and our outlook for the year as a whole remains unchanged.   

Although quarterly corporate insolvency appointments continue to show year on year declines, the absolute number of insolvencies in the final three quarters of calendar year 2014 stabilised at an average of c4,100 appointments per quarter. In 2014 as a whole there were 17,117 (2013: 18,856) corporate insolvencies*, which represents a 9% year on year decrease. Trading in the insolvency division in the period was broadly consistent with that reported at the half year.

*Source: The Insolvency Service quarterly statistics of corporate insolvency appointments in England and Wales.

On 17 December 2014, we completed the acquisition of the Eddisons property consultancy. Trading in the post-acquisition period has been in line with our expectations at the time of the acquisition. The primary focus since the acquisition has been to integrate the operational teams to deliver anticipated synergies, and good progress has been made to date.

We anticipate exceptional costs in the current financial year as a result of acquisition and integration costs and to deliver further cost savings in the insolvency business.

Net debt at the end of the period was in line with the Board's expectations and the Group remains comfortably within its banking facilities.

Ric Traynor, Executive Chairman of Begbies Traynor Group plc, said:

"Increased activity levels in the typically busier winter months for insolvency leave the Group well placed to deliver the Board's expectations for the year as a whole."

"I am pleased with the initial progress in integrating Eddisons into the Group; their team adds significant expertise in the valuation and disposal of property and business assets for insolvency, which is intrinsic to the Group's core insolvency practice, as well as expanding our service offering into other areas of property advice."

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Enquiries please contact:

Begbies Traynor Group PLC                                                                0161 837 1700

Ric Traynor - Executive Chairman

Nick Taylor - Group Finance Director

Canaccord Genuity Limited                                                                  020 7523 8350

(Nominated Adviser and Joint Broker)

Bruce Garrow / Cara Griffiths / Philippa Underwood

Shore Capital                                                                                          020 7408 4090

(Joint Broker)

Pascal Keane

MHP Communications                                                                            020 3128 8100

Reg Hoare / Katie Hunt / Giles Robinson

Notes:

Begbies Traynor Group plc operates from 43 UK locations through two operating divisions. 

Begbies Traynor is the UK's leading independent business recovery practice handling the largest number of corporate appointments, principally serving the mid-market and smaller companies. We provide a range of specialist professional services primarily to businesses, their professional advisors and the major banks covering insolvency, restructuring and risk management activities.

Eddisons is a leading UK firm of chartered surveyors, offering a wide range of specialist services to banks, insolvency practitioners, and owners and occupiers of commercial property. The core services offered are valuation and disposal of property including fixed charge property receiverships; valuation and disposal of machinery and business assets; auctions; insolvency insurance brokerage; property and facilities management; and building consultancy and ratings valuations.

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

 

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