30th Sep 2014 08:55
LONDON (Alliance News) - Begbies Traynor Group PLC said Tuesday that following the first four months of its financial year, trading is in line with the group's typical seasonal trading patterns, remaining weighted toward the second-half.
In a trading update on its first four months of the financial year commencing May 1, the company said it retains its expectations for the first-half.
In a statement released ahead of the independent business recovery practice company's annual general meeting Tuesday, the firm said the first-half, which includes the quieter summer months, is a relatively slow trading period, with the bias of activity expected towards the second-half.
Executive Chairman Ric Traynor said that market conditions remain challenging, with the Government insolvency statistics "worse than expected." An 8% decline was reported in the number of corporate insolvency appointments to 8,948 in the first-half of calendar year 2014 compared to 9,727 in the same period of 2013, according to quarterly statistics of corporate insolvency appointments in England and Wales from The Insolvency Service.
While this reduction in market activity has led to lower year-on-year revenue, said Begbies Traynor, it has been partially mitigated by the contributions from recent acquisitions.
Looking ahead, the company said that in line with the previous year, the financial outturn for the full-year will be heavily dependent on trading in the traditionally busier second-half, though warned that insolvency market conditions remain challenging, and may hit its full-year performance.
"With the benefit of a strong financial position and committed bank facilities, we are well placed to continue to take advantage of opportunities to enhance the business through both organic investments and selective acquisitions," said Traynor.
Shares in Begbies Traynor were Tuesday morning trading 7.53% lower at 47.85 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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