Last checked at 27 May 2008 07:00
RNS release - 27 May 2008
Begbies Traynor Group plc
Trading Update
Begbies Traynor Group plc ('BTG') will announce its results for the year ended 30 April 2008 on 9 July 2008. Those results are expected to be in line with market expectations. Our core activity of business insolvency, which accounts for some 75% of turnover, has had a significant recovery in work flow since we reported, in December last year, that first half results had been impacted by the weak market conditions in 2007. The group's other main operating divisions, corporate finance and tax consulting, also delivered good second half performances.
Operating cash inflows in the second half were significantly improved. The company has recently renewed its banking facilities at increased levels for a 3 year term to support future growth.
We previously reported that the group would scale back its commitment to the personal insolvency sector and this remains our policy: the current case book will be sold or run off over time. Additionally, and as a result of a recent review of non-strategic activities, we have decided to dispose of a non-core subsidiary. These decisions will result in one off non-cash charges, by way of impairment of the carrying value of intangible assets in the forthcoming results, but will enable the group to concentrate on its core activities.
BTG starts the current year with a replenished case load in business insolvency and market indicators continue to predict stronger demand in this, our counter-cyclical core business. The board looks forward to a sustained period of improved new work flow and to giving clearer comment on market expectations of current year performance when the 2008 results are announced in early July.
Ends
| For further information, please contact: | www.begbies-traynorgroup.com |
| Begbies Traynor Group plc | 0161 837 1700 |
| Ric Traynor, Executive Chairman John Gittins, Chief Financial Officer | |
| Shore Capital & Corporate Limited | 020 7408 4090 |
| Guy Peters | |
| Smithfield | 020 7360 4900 |
| Reg Hoare/Katie Hunt/Will Henderson |
About Begbies Traynor Group:
Begbies Traynor Group plc is a specialist professional services organisation providing independent professional advice and solutions to businesses, financial institutions, the accountancy professions and individuals in the areas of corporate finance, recovery, investigation, risk management, commercial finance and specialist tax advice. It is listed on AIM (Ticker: BEG.L).