(Alliance News) - Begbies Traynor Group PLC on Tuesday reported results ahead of its expectations, thanks to improved trading and acquisitions.
Manchester, England-based Begbies Traynor is a business recovery, financial advisory and property services consultancy.
Pretax profit for the year that ended on April 30 was GBP1.9 million, a fall of 53% year-on-year from GBP2.9 million. It posted revenue for the financial year of GBP83.8 million, a rise of 19% from GBP70.5 million.
Revenue in business recovery and financial advisory increased by 20% to GBP59.7 million from GBP49.6 million in the prior financial year, reflecting a strong performance from its advisory team and robust performance in business recovery.
However, operating costs increased to GBP45.0 million from GBP38.0 million in the same period, principally from costs associated with acquired businesses, together with organic investment and increased people costs. Direct costs increased by 20% to GBP48.3 million. Administrative expenses also increased 23% to GBP32.9 million year-on-year.
The company announced a 7% increase in the total dividend for the year to 3.0 pence from 2.8 pence in the prior financial year, representing its fourth consecutive year of dividend growth.
"I am pleased to report on a year of real progress for the group, with results ahead of our original expectations due to improved trading and acquisitions. We have delivered a strong financial performance with another year of growth in revenue and adjusted profits, despite the impact of the Covid-19 pandemic, whilst making substantial investments which have significantly increased the scale of the group and its capabilities," said Executive Chair Ric Traynor.
With the benefit of recent acquisitions, organic growth and future acquisition opportunities, the company says it is well positioned to deliver the anticipated material growth in earnings in the new financial year.
Shares in Begbies Traynor were up 1.4% at 132.00 pence each in London on Tuesday afternoon.
By Amrit Sahota; newsroom@alliancenews.com
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Begbies (BEG)