Begbies Regulatory News (BEG)

14 Nov 2006 07:01

Begbies Traynor Group PLC14 November 2006 RNS Release 14 November 2006 Begbies Traynor Group plc Pre-Close Trading Update Begbies Traynor Group plc ("BTG" or "the Group") (AIM: BEG) announces that itsinterim results for the six months to 31 October 2006 will be released on 16January 2007 and provides a pre-closing update on current trading. The Board confidently expects that the Group will report activity and profitsfor the period that reflect the growth of the Group since the annual report forthe year to April 2006 and firmly underpin market expectations for the year toApril 2007. In addition to the acquisitions in May and June 2006, already the subject ofspecific announcements and which have now been fully integrated, we have madesignificant strides in augmenting our core services through the hire of seniorindividuals and teams across all of our professional service streams. We have welcomed substantial corporate finance teams in London and Manchester,bringing our fee earning strength to 23 over 3 major city locations. We haveadded a Manchester based team and a specialist risk management team in London toour expanding investigation services division and, in our traditional corebusiness of insolvency, we have successfully concluded the lateral hire of 3licensed key individuals and the fee earner support staff they require. Weremain in discussion with a number of further potential candidates. Total groupheadcount is now 346 fee earners and 100 in support/administration. Having paused our programme of acquisitions over the summer, to facilitate thesmooth integration of those already completed, the Board has opened discussionswith a number of businesses in insolvency and other professional servicesactivities. Whilst none of these potential acquisitions can yet be announced, weare confident that several will reach positive conclusions over the comingmonths. Overall, our markets have shown encouraging signs of demand growth, although theonly dramatic growth area has been in the provision of consumer debt solutions.That market is currently the subject of considerable speculation prompted bycomments from the lending community. This activity accounts for only around 5%of the Group at present and the Board has resolved not to aggressively expand inthis area, until we have concluded our discussions with lenders as to how theywish this insolvency service to be conducted. In the medium term, however, theBoard remains convinced that a profitable market in this area will persist andexpects to build the Group's position within it, based on our existing closeworking relationships with the major lending institutions. Since its formal launch announced only a month ago, BGN, our network ofinternational associations, has proved pleasingly successful, with a steadystream of applicants for membership and the creation of significant cross borderreferrals. The Board is very pleased with the progress made by the Group over the firsthalf of its current accounting year and looks forward with great confidence. Enquiries, please contact: Ric Traynor Mike SawbridgeExecutive Chairman Nominated advisorBegbies Traynor Group plc Shore Capital & Corporate Limited0161 839 0900 0151 600 3722 This information is provided by RNS The company news service from the London Stock Exchange