Begbies Traynor FY results to be 'at least in line' with market views

Financial advisor and property services consultancy Begbies Traynor said on Wednesday that full-year results are set to be "at least in line" with current market consensus for adjusted pre-tax profit of £9.8m.

In an update on trading for the six months to the end of October, the company hailed a "strong" financial performance, with revenue up around 10% and adjusted pre-tax profit around 25% higher. Begbies said it absorbed the downside impact of lockdown in the first few months of the financial year.

"Overall, the board expects results for the full year to be at least in line with current market consensus, which would represent a further year of growth," it said.

Begbies’ business recovery and financial advisory division performed well in the first half, it said, despite the insolvency market being subdued due to the government's Covid-19 financial support measures.

The company increased its market share of new insolvency appointments in the period, which together with an increase in average case size, helped to partially mitigated weakness in the wider market.

"These developments, combined with the first-time contribution from prior year acquisitions, has enabled the division to record growth in revenue and profits on the comparative period," it said.

The property advisory and transactional services business delivered a "robust" performance, it said. It generated solid operating margins, with a strong performance from the building consultancy business, which partially offset downside from service lines which were hit by the lockdown in spring.

Executive chairman Ric Traynor said: "I am pleased to report a continuing strong financial performance in the first six months of the financial year, which is testament to how our teams continue to deliver excellent client service in a challenging environment.

"We anticipate continuing our recent financial track record of growth for the year as a whole, ensuring we are well placed to invest in our successful organic and acquisitive growth strategy. Overall, our medium-term outlook remains positive especially once the economy exits this current period of uncertainty."