11th Jul 2023 10:21
(Alliance News) - Begbies Traynor Group PLC on Tuesday said it recorded yearly profit and revenue growth and expects to meet market expectations for its new financial year.
The Manchester, England-based business recovery, financial advisory and property services consultancy said for the year ended April 30, pretax profit was up 50% to GBP6.0 million from GBP4.0 million a year prior.
This was driven by increased insolvency appointments and enhanced reputation for mid-market insolvencies, contribution from acquisitions in finance broking and property advisory, and organic growth from property service lines.
Revenue grew by 11% to GBP121.8 million from GBP110.0 million the year before. 6% of this was organic growth, while the remaining 5% was acquired, Begbies Traynor explained.
Begbies Traynor proposed a total dividend of 3.8 pence, up 8.6% from 3.5p in financial 2022.
Looking ahead, the company said it is confident in meeting market expectations, with financial 2024 starting off strongly. Market forecasts for revenue are in the range of GBP127.5 million and GBP131.4 million, while adjusted pretax profit is expected to be in between GBP21.9 million and GBP22.7 million.
Chair Ric Traynor said: "We have started our new financial year confident in our outlook. The increased scale of the group with complementary professional services and an enhanced client base provides a strong platform for us to continue delivering growth. With 80% of income generated from counter-cyclical and defensive activities, we are well-positioned in the current challenging economic environment.
"Our strong balance sheet and cash generation underpin our capacity to deliver organic growth initiatives and progress our pipeline of acquisitions, thereby continuing our track record of growth."
Shares in Begbies Traynor were down 1.5% at 132.50 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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