9th Jul 2014 09:39
LONDON (Alliance News) - Begbies Traynor Group PLC Wednesday reported a 10% drop in revenue in its recent financial year, but pretax profit rose due to lower exceptional charges being booked.
The business recovery practice group posted a pretax profit of GBP3.8 million for the year ended April 30, compared with a GBP2.4 million profit the prior year. It said profits rose after booking GBP0.8 million in exceptional costs during the year, down from GBP3.9 million in such costs last year.
Revenue for the year fell to GBP45.8 million, down from GBP51.1 million the prior year, which it said was due to a 9% fall in the number of corporate insolvencies in the UK in the 2013 calendar year, compared to 2012. The company said GBP4.0 million of cost reductions partially mitigated the full impact of reduced revenues.
The company maintained its total dividend for the year at 2.2 pence.
"With the benefit of our reduced cost base, a strong financial position and committed medium- and long-term bank facilities, the group remains well placed to take advantage of opportunities to develop and enhance the business, both organically and through selective acquisitions," said Chairman Ric Traynor in a statement.
Traynor said the business also now has the capacity to handle an increase in activity levels should they arise.
During the year the company acquired Manchester-based insolvency boutique Cooper Williamson, a company it said has a strong internet presence.
Since year-end, the company has recently completed the acquisition of the trade and assets of London-based corporate insolvency specialist Ian Franses Associates Ltd, an acquisition it said brings both additional capacity and relationships to the group.
Having acquired the business for an initial GBP0.6 million in cash, the acquisition has a deferred consideration of up to GBP1.4 million, depending on the business's financial performance over a three-year period.
Begbies Traynor shares were down 2.9% at 45.50 pence Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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