Begbies Traynor trading in line, administrations still lower
Business recovery, financial advisory and property services company Begbies Traynor Group said in an update on Wednesday that trading performance in the third quarter was “broadly in line” with the first half.
The AIM-traded firm said that meant its full-year result was expected to be within the range of market expectations, and “significantly ahead” of last year.
It said its business recovery and financial advisory division was trading in line with expectations, adding that over the course of the financial year, insolvency numbers had returned to pre-pandemic levels due to increased liquidations, although administrations - typically larger and more complex instructions - remained “much lower” than before Covid-19.
A return to more normal activity levels in that market was now more likely to benefit the company’s new financial year, the board said, rather than the current year.
The property advisory and transactional services division, meanwhile, was also performing in line with expectations, and reflected the contribution from the two acquisitions completed in the current financial year.
Begbies Traynor said it had maintained its “strong” financial position, with “significant levels” of headroom within its committed bank facilities, ensuring it was “well placed” to continue to invest in its successful growth strategy.
“We have performed well in the third quarter, benefiting from the integration of our recent acquisitions and our broad range of complementary services which provide a strong platform for growth,” said executive chairman Ric Traynor.
“Although insolvency numbers are inexorably rising, the market is still awaiting a rise in the larger and more complex instructions that may result from the current economic headwinds and the removal of the final government financial support measures in March.”
At 1513 GMT, shares in Begbies Traynor Group were down 8.96% at 108.97p.
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