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Financial Services

Begbies Traynor jumps as increasing insolvencies boosts profits

Begbies Traynor (AIM:BEG) reported an uptick in revenue and profit for the first half of the year, in part owing to an increase in insolvency activity.

Revenue climbed 16% to £76.3 million during the six months to October, aiding a 16% increase in adjusted pre-tax profit to £11.5 million, the insolvency specialist said Tuesday.

“Increased year-on-year insolvency activity levels in higher value cases” was highlighted, alongside the likes of strong growth in asset sales on higher property auction volumes.

“Market conditions remain supportive for the group's service lines which is reflected in our current activity levels and positive momentum,” executive chairman Ric Traynor said.

Net debt sat at £3.8 million as of October, against a £1.1 million cash surplus a year earlier.

Begbies Traynor (AIM:BEG) also lifted its interim dividend from 1.3p to 1.4p.

Shares climbed 4.2% to 98.34p.

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