A rise in company failures has helped business restructuring and advising firm Begbies Traynor report sales and earnings ahead of expectations.
The Manchester-based company reported that over the past year, insolvency rates have risen as businesses struggle under the weight of skyrocketing cost inflation and declining customer expenditure.
The organisation has worked on the administrations of rugby union side Worcester Warriors and high street stationery chain Paperchase over the past year. Paperchase closed its 106 stores due to financial difficulties.
Begbies Traynor revenues are expected to rise by 11% to £122 million
Begbies Traynor informed shareholders on Monday that revenues for the year ending on April 30 are anticipated to have increased by 11% to £122 million compared to the prior year.
Pre-tax earnings should have increased by 16% to £20.7 million for the entire year.
As insolvency market volumes “continued to increase,” Begbies Traynor praised the “good organic growth” in business recovery efforts, which have increased 6% over the past year.
There were increases in the number of liquidations over pre-pandemic levels as well as a rebound in administrations, however these are still below historic levels.
Manchester based Begbies Traynor has also profited from its ongoing acquisition strategy, which has included a recent acquisition of Banks Long & Co.
“We performed strongly in the financial year, with results ahead of market expectations, helped by our increased scale and enhanced reputation in mid-market insolvency,” said Ric Traynor, executive chairman of Begbies Traynor.
By expanding both our financial advising company and our real estate advisory services, we have expanded our scope of services. These earnings-accretive acquisitions were primarily made possible by our strong cash creation.
We are well-positioned to continue investing in the company, both organically and through acquisitions, in order to further expand our scale and assortment of additional services thanks to our solid financial standing.
Begbies Traynor, the business restructuring and advising firm, has surpassed market expectations in sales and earnings due to a rise in company failures and insolvency rates. The challenging business landscape, characterized by soaring cost inflation and reduced customer spending, has created a demand for the firm’s services.
Through their involvement in significant administrations and strategic acquisitions, Begbies Traynor has expanded its reach and solidified its reputation in the industry. With strong financial standing and a commitment to both organic growth and acquisitions, the company is well-positioned to continue its success and broaden its range of services.
As businesses face ongoing challenges, Begbies Traynor’s expertise and ability to navigate complex financial situations will likely play a vital role in supporting and advising companies in need.
Worried about your company falling into administration, our team offer free insolvency advice in Manchester, simply complete the online enquiry form today.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.