Trading Statement

RNS Number : 9416L

Begbies Traynor Group PLC

01 May 2015

 



1 May 2015

Begbies Traynor Group plc

Insolvency market and year end trading update

Begbies Traynor Group plc ("the Group"), the business recovery and property services consultancy, today issues a trading update for the year ended 30 April 2015 ("the period"). 

Insolvency market update

The number of UK corporate insolvencies in the first quarter of 2015 was 4,014*, which represents an 11.3% reduction compared to Q1 2014 and is the lowest level of quarterly appointments since Q4 2007.

Overall UK corporate insolvency appointments for the year to 31 March 2015 (the period which most closely matches the Group's financial year) were 16,380 (2014: 18,994), representing a 14% year on year reduction.

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

Trading update

Begbies Traynor has maintained its market-leading position by number of appointments and has continued to strengthen its position through the strategy of selected bolt-on insolvency acquisitions. However, this has only partially mitigated the impact of a declining market. As a result, the Board now anticipates that the outturn for the full year will be below market expectations.

The Board has continually looked to manage the Group's cost base to reflect lower levels of overall market activity, the benefits of which have been realised incrementally during the second half of this financial year and will be fully realised in future periods.

Eddisons, the property consultancy that was acquired on 17 December 2014, continues to perform in line with our expectations at the time of the acquisition and we are beginning to realise the expected revenue and cost synergies following its integration.

The Group continues to operate comfortably within its banking facilities and will provide a further update on trading at the time of its full year results which are expected to be announced in July 2015.

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

"Whilst it is disappointing to have seen a further decline in the overall insolvency market in the UK, we have maintained our market-leading position and have taken action to align our cost base to current activity levels."

"We have made good progress integrating Eddisons into the Group and we are already starting to realise the synergies that the team's expertise brings to the Group's core insolvency practice."

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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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