Last checked at 1 Oct 2013 07:00
1 October 2013
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 first four months of the current financial year commencing 1 May 2013.
Current year trading
"The first four months of our financial year, over the summer, is historically our quietest trading period. Market conditions have continued to be subdued as evidenced by the Government insolvency statistics; these showed a 13% decline in corporate insolvency appointments for the first half of calendar year 2013 compared to the same period last year, from 11,192 to 9,719*. In addition there remains pressure on fee rates and the value of cases, overall leading to a reduction in year on year revenue to date.
As expected, we have realised the year on year cost reductions of £2m which were announced in July, which has partially mitigated the reduction in revenue.
Net debt is broadly in line with our expectations following anticipated seasonal cash outflows (principally dividends, provisions and tax), with debtors and work in progress broadly unchanged from the year-end.
* Source: The Insolvency Service quarterly statistics of corporate insolvency appointments in England and Wales
Outlook
Our expectations for the year as a whole remain unchanged. However, the financial outturn is, as in prior years, heavily dependent on trading in our traditionally busier months of the year and on insolvency market conditions, which show no sign of improving.
Whilst the Group retains the resources to handle an increase in activity levels should it arise, and the financial capacity to make organic investments and selective acquisitions, the board continues to plan for the persistence of current suppressed market conditions."
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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
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