1st Oct 2013 08:01
LONDON (Alliance News) - Shares in Begbies Traynor Group PLC dropped 13% Tuesday morning after it warned that its full-year expectations were unchanged, but were heavily dependent on trading in its traditionally busier months and on insolvency market conditions that hadn't improved.
Begbies is an independent business-recovery practice. Its shares were trading down 5.16 at 33.84 pence Tuesday morning.
"Market conditions have continued to be subdued as evidence by the (UK) government insolvency statistics," said Executive Chairman Ric Traynor in a statement ahead of Begbies annual general meeting. "These showed a 13% decline in corporate insolvency appointments for the first half of the calendar year 2013 compared to the same period last year, from 11,192 to 9,719."
The company said that it had realised year-on-year cost reductions of GBP2 million as of July, which had partially mitigated a reduction in revenue. It said that it retained the resources to handle an increase in activity levels should it arise and it would continue to plan for persistently suppressed market conditions.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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