Begbies Traynor makes 'good start' to new trading year

(Sharecast News) - Corporate restructuring specialist Begbies Traynor said on Thursday that it had delivered a tenth consecutive year of profitable growth, with full-year results ahead of original market consensus expectations. Begbies Traynor, which will hold its annual general meeting today, said it had seen strong organic growth across both of its divisions, supporting a marked increase in free cash flow and an 8% hike to its total dividend - its eighth consecutive year of dividend growth.

The London-listed firm stated that its strategy of investing in organic development and earnings-enhancing M&A had created a diversified and resilient platform, with the business tripling in size over the past decade and adjusted pre-tax profits rising sixfold. It added that progress towards its medium-term revenue target of £200m had continued.

Looking ahead, Begbies said it had made a good start to the new financial year, with encouraging activity levels and positive momentum across the group. Begbies also noted that recent recruitment of senior fee earners was expected to support growth in the second half and beyond.

Results for the three months ended 31 July were in line with expectations, with the group stating that it remained confident of meeting FY market forecasts for revenues of £163m to £164m and adjusted pre-tax profits of £23.7m to £24.9m.

As of 0940 BST, Begbies Traynor shares were down 0.84% at 120.98p.

Reporting by Iain Gilbert at Sharecast.com