FTSE Recovers But Pound Slips As Covid Cases Rise
Begbies Traynor has warned that business insolvencies are expected to increase in the second half of the year when the government ends a series of pandemic supports, my colleague reports Simon foy.
The insolvency specialist said he would be boosted by an “increase in market activity levels”, but added that he did not foresee a “sudden insolvency tsunami” when ministers end emergency business support.
Executive Chairman Ric Traynor said: “We don’t expect a tidal wave of insolvencies to suddenly emerge, but there will undoubtedly be an element of catching up among companies that haven’t. not started any formal process in the past year.
“There will also be companies that entered the pandemic in a proper financial position but now carry a lot of debt that they may not be able to handle. “
The Aim-listed company said the increase in activity will occur over the next two years, with the highest number of insolvencies likely to occur in the retail, hospitality and industry sectors. construction.
It came as the company posted a 35% drop in pre-tax profits to £ 1.9million, despite revenue rising nearly a fifth to £ 83.8million sterling.
Its performance is driven by four acquisitions made since the start of the year and the improvement in trade.
Earlier this year, Begbies Traynor purchased independent insolvency practitioners CVR Global and David Rubin & Partners, “which significantly increased our scale in the key London market and opened our first offshore offices,” said the society.
The board declared a dividend of 3pc per share, an increase of 7pc from last year. Shares fell 0.6 percent to 129.4 percent, valuing the company at £ 196.4million.