Begbies Regulatory News (BEG)

10 Dec 2009 07:00



10 December 2009

BEGBIES TRAYNOR GROUP PLC ("the Group")

 Half Year Trading Update

 Notice of Interim Results

Begbies Traynor Group plc, the specialist professional services organisation, today issues a trading update for the six months ended 31 October 2009. The Group will issue its interim results for the period on Thursday, 21 January 2009.

Overall Group results for the first half will be significantly ahead of the same period last year, due to the good progress made in the Group`s insolvency division, and are in line with management expectations.

The Group`s corporate finance business has now been integrated within its core insolvency and recovery division, in order to maximize resource utilisation, particularly in recovery and turnaround activities. This enlarged division, which accounts for approximately 85% of Group turnover, has continued its good progress. Its results in the first half will be significantly ahead of the same period last year, despite the volume of insolvency cases in the UK market not yet reaching predicted peaks.

The Group`s non-insolvency divisions continue to experience challenging market conditions. Accordingly, the overall results from these divisions will be lower than those of the same period last year, with the full effects of the current economic environment impacting the tax division. 

As at 31 October 2009, the Group`s net debt, excluding asset related finance, stood at £16m, comfortably within covenants for the existing bank facilities of £25m, and the Group is in a strong financial position. 

A further update will be provided at the time of the interims.

Ric Traynor, Executive Chairman of Begbies Traynor Group, said:

"Overall trading in the first half has been satisfactory. The extent of business distress and our increased capacity to assist troubled businesses are expected to result in our counter cyclical work flow continuing to grow over the medium term."