Last checked at 1 Oct 2012 07:00
1 October 2012
Begbies Traynor Group plc
AGM Statement
Trading Update
Begbies Traynor Group plc ("the Group"), the UK's leading independent business recovery practice, is today holding its Annual General Meeting at which Ric Traynor, Executive Chairman, will make the following remarks on the Group's performance in the current financial year commencing 1 May 2012.
Current year trading
"Current year trading reflects the seasonality of the quieter summer months and continuing subdued market conditions, which saw a 12% decline in the number of insolvencies from the first calendar quarter of 2012 (5,772*) to the second quarter (5,065*) and an 8% decline on the comparative period of 2011. The performance of the Global Risk Partners division has stabilised in the period as a result of the on-going restructuring of the business.
The Group continues to focus on managing its cost base, which will incur exceptional restructuring costs of £1m in the period.
* Source: The insolvency service quarterly statistics
Net debt
The Board currently expects net debt at the half year end will be around the level reported at 30 April 2012, comfortably within the Group's banking facilities.
Outlook
Our expectations for the year as a whole remain unchanged, with the financial outturn dependent on trading activities in our traditionally busier months of the year together with wider insolvency market activity levels, supported by the benefits of the Group's cost saving initiatives.
Having successfully reshaped the Group over the last year, we remain committed to growing our cash-generative and profitable business, both organically and through carefully targeted acquisitions which enhance this core business."
Enquiries please contact:
Begbies Traynor Group PLC 0161 837 1700
Ric Traynor - Executive Chairman
Nick Taylor - Group Finance Director
Canaccord Genuity Limited 020 7523 8350
(Nominated Adviser and Joint Broker)
Bruce Garrow / Adam Miller
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