Last checked at 9 Jun 2011 07:00
9 June 2011
Begbies Traynor Group plc
Year end trading update
Begbies Traynor Group plc (the "Group"), the specialist professional services consultancy, today issues a trading update for its financial year ended 30 April 2011, ahead of announcing its final results on Thursday, 7 July 2011.
Activity levels in the final quarter indicate that the Group's underlying trading performance is expected to be broadly in line with the Board's updated expectations, as stated in our third quarter trading update (issued on 10 March 2011), with net debt lower than expectations following strong operating cash flows in the final quarter.
The overall market for UK corporate insolvencies remains challenging, albeit it has stabilised during the first quarter of 2011. There are currently no signs of a material recovery in volumes, in spite of the many indicators of financial stress in the UK.
As indicated in our announcement on 10 March 2011, we have taken actions across the Group to re-align the cost base. We expect the exceptional costs relating to this programme to be broadly in line with the previously announced charge of £3m. In addition, the Board is currently reviewing the carrying value of assets related to the tax division, including goodwill and unbilled income. The result of this review will be announced in July.
Ric Traynor, Executive Chairman of Begbies Traynor, said:
"The Group's performance has stabilised following a disappointing year. We have taken action to realign the business to current levels of activity, whilst maintaining our leading market position in UK SME insolvency and retaining the capacity to take advantage of any upturn in this market."
Enquiries please contact:
Begbies Traynor Group PLC 0161 837 1700
Ric Traynor - Executive Chairman
Nick Taylor - Group Finance Director
Collins Stewart Europe Limited 020 7523 8350
(Nominated Adviser and Joint Broker)
Mark Dickenson / Bruce Garrow
Shore Capital 020 7408 4090
(Joint Broker)
Andrew Raca
MHP Communications 020 3128 8100
Reg Hoare / Katie Hunt