10th Mar 2015 10:57
LONDON (Alliance News) - Begbies Traynor Group PLC Tuesday said trading during the third quarter was in line with expectations and reiterated its outlook for the full financial year, but warned the acquisition of Eddisons will lead to exceptional costs in its annual results.
The business recovery and property services consultancy business said that, although quarterly corporate insolvency appointments continue to show year on year declines, the absolute number of insolvencies in the final three quarters of the 2014 calendar year stabilised at an average of 4,100 appointments per quarter.
In 2014 as a whole, Begbies said there were 17,117 corporate insolvencies, down from 18,856 insolvencies in 2013, representing a 9% year-on-year decrease.
In December, Begbies acquired Eddisons property consultancy, and the company said it has performed in line with expectations as it integrates the operational teams to the rest of the company.
"I am pleased with the initial progress in integrating Eddisons into the group; their team adds significant expertise in the valuation and disposal of property and business assets for insolvency, which is intrinsic to the group's core insolvency practice, as well as expanding our service offering into other areas of property advice," said Executive Chairman Ric Traynor.
"We anticipate exceptional costs in the current financial year as a result of acquisition and integration costs and to deliver further cost savings in the insolvency business," said the company in a statement.
Net debt at the end of the period was in line with the board's expectations and the company remains comfortably within its banking facilities, it said.
"Increased activity levels in the typically busier winter months for insolvency leave the group well placed to deliver the board's expectations for the year as a whole," said Traynor.
Begbies shares were down 3.1% to 46.05 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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