Begbies Traynor revises up earnings expectations
Begbies Traynor has revised up its earnings expectations following a year of growth at the professional services firm that saw it make four acquisitions.
In a market update today the company said revenue for its 2021 financial year was expected to be £83.7m, up from £70.5m in 2020.
Adjusted profit before tax was revised up to £11.5m, an increase on 2020’s £9.2m.
The group’s share price rose 5.6 per cent following the market update this morning.
Executive chairman Ric Traynor said: “We expect our results for the full year will be comfortably ahead of market expectations. This will represent another year of growth in revenue and profits, whilst investing in the group to expand the range and depth of our service lines.
“This strong financial performance is despite the impact of a suppressed insolvency market and the lockdown at the start of the financial year.
“Our transactional businesses have bounced back strongly, our organic investments have made good progress and we continue to believe that the number of insolvencies will increase as the government support measures are removed.”
Corporate insolvencies decreased by 34 per cent in the year ended 31 March 2021 to 11,081.
The executive chairman previously told City PM that many businesses that would typically have folded during a normal year have been propped up by government Covid schemes.
The company has already made four acquisitions in the 2021 calendar year, in a bid to scale the group and its capabilities.