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LONDON (Alliance News) - Professional services consultancy Begbies Traynor Group PLC Friday said it now expects its full year results to be below market expectations, as acquisitions have only partly mitigated a hit from the declining UK insolvency market.
The company said the number of UK corporate insolvencies in the first quarter of 2015 was down 11.3% compared to the previous year, and for the year to end-March UK corporate insolvencies were down 14% year-on-year.
According to broker forecasts provided by Morningstar, for the year to end-April Shore Capital expects Begbies Traynor to post a pretax profit of GBP5.5 million. Canaccord Genuity Ltd expects it to post a pretax profit of GBP5.2 million, and Milkstone Ltd a pretax profit of GBP5.8 million.
Begbies said it has continued to look to manage its cost base due to the lower levels of market activity, and whilst this has been incrementally realised during its second half, will be realised in full in future periods.
Property consultancy Eddisons, which it acquired last December, continues to perform in line with the company's expectations.
"Whilst it is disappointing to have seen a further decline in the overall insolvency market in the UK, we have maintained our market-leading position and have taken action to align our cost base to current activity levels," said Executive Chairman Ric Traynor in a statement.
Shares in Begbies Traynor are trading down 14.1% at 41.00 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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