Begbies Traynor profits slip

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Date: Wednesday 09 Jul 2008

LONDON (ShareCast) - Insolvency specialist Begbies Traynor posted lower full year profits but expects a recovery this year as the impact of the credit crunch sends more firms to the wall.

"Following one of the quietest periods for corporate insolvency in nearly 20 years, reflecting the ready availability of easy credit, the advent of the credit crunch through the autumn of 2007 resulted in a significant change in activity levels. I am therefore pleased to announce improved insolvency performance in the second half," executvie chairman Ric Traynor said.

Profit before tax for the year to April was £5.7m down from 8.5m while underlying profits fell to £7m from £9.2m. Revenues rose from £41.9m to £48.1m.

Begbies added it has decided to withdraw from the consumer insolvency market and has initiated offers for the current case book. It has also decided to dispose of the non-core Servisional business.

"The group starts the new financial year with an enhanced insolvency platform, a replenished insolvency case load and market indicators which continue to predict stronger demand in this, our counter-cyclical core business. The board therefore looks forward to a sustained period of improved new work flow and insolvency returns," Traynor said.

The dividend for the year is unchanged at 2.5p.

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