Last checked at 28 Sep 2011 07:00
28 September 2011
Begbies Traynor Group plc
AGM Statement
Q1 Trading Update
Begbies Traynor Group plc ("the Group"), the specialist professional services consultancy, is today holding its Annual General Meeting at which Ric Traynor, Executive Chairman, will make the following remarks on the Group's performance in its first quarter ended 31 July 2011.
Q1 trading
"Trading in the continuing business in the first quarter of the current financial year has been in line with market expectations for the year as a whole.
"Activity levels in the Group's insolvency and restructuring division, which accounts for 90% of continuing revenues, are in line with the prior year with the benefit of prior year cost saving initiatives starting to be realised. We continue to anticipate that this should result in some incremental improvement in margins over the course of the financial year.
"The market level of corporate insolvencies has stabilised in the first two quarters of 2011, having fallen during calendar year 2010. Despite the lack of economic recovery, base rates of 0.5% (since May 2009) continue to provide a very benign financing environment for otherwise weak companies.
"Activity levels within the global risk partners division have been slightly below the previous year, with project activity anticipated to be second half weighted this year.
Discontinued operations
"Following the strategic review last year and as announced at the time of the Group's final results in July 2011, we commenced a divestment process of the tax and red flag divisions. This is continuing as planned and we will make further announcements as appropriate.
Summary
"We will continue to invest in our two core businesses to enhance their market positions and take advantage of growth opportunities, whilst remaining focused on returning the group to profitable growth.
"The Group's half year results will be announced in mid December."
Enquiries please contact:
Begbies Traynor Group PLC 0161 837 1700
Ric Traynor - Executive Chairman
Nick Taylor - Group Finance Director
Collins Stewart Europe Limited 020 7523 8350
(Nominated Adviser and Joint Broker)
Mark Dickenson / Bruce Garrow
Shore Capital 020 7408 4090
(Joint Broker)
Pascal Keane
MHP Communications 020 3128 8100
Reg Hoare / Katie Hunt / Giles Robinson
Information on Begbies Traynor Group can be accessed via the Group's website at www.begbies-traynorgroup.com