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| Profits halve at insolvency specialist Begbies Traynor as fewer firms go bust | Profits halve at insolvency specialist Begbies Traynor as fewer firms go bust |
| (3 months later) | |
| Profits at the insolvency specialist Begbies Traynor have halved because fewer UK companies are going bust. | Profits at the insolvency specialist Begbies Traynor have halved because fewer UK companies are going bust. |
| The firm, which has been administrator to indebted groups from Port Vale FC to Rotherham-based United Carpets, reported that pre-tax profits were down £2.4m for the year until the end of April, compared with £5.5m the previous year. Revenues fell by more than 10% to £51m. | The firm, which has been administrator to indebted groups from Port Vale FC to Rotherham-based United Carpets, reported that pre-tax profits were down £2.4m for the year until the end of April, compared with £5.5m the previous year. Revenues fell by more than 10% to £51m. |
| In a statement the board blamed the profit fall on a 10% decline in insolvency cases, which it said had reached historic lows compared to previous recessions. Low interest rates combined with "lenient attitudes by creditors towards financially stressed companies" mean fewer firms are going into administration, it said. | In a statement the board blamed the profit fall on a 10% decline in insolvency cases, which it said had reached historic lows compared to previous recessions. Low interest rates combined with "lenient attitudes by creditors towards financially stressed companies" mean fewer firms are going into administration, it said. |
| According to the insolvency firm's latest red flag alert report, which monitors troubled companies, the number of UK firms experiencing "critical problems" fell by 34% in the first quarter of 2013, compared with the previous year. Over the same period, the wider UK economy grew 0.3% according to official data. Begbies said firms offering professional services, bars and restaurants were less likely to collapse under their debts, although retailers were continuing to struggle. | According to the insolvency firm's latest red flag alert report, which monitors troubled companies, the number of UK firms experiencing "critical problems" fell by 34% in the first quarter of 2013, compared with the previous year. Over the same period, the wider UK economy grew 0.3% according to official data. Begbies said firms offering professional services, bars and restaurants were less likely to collapse under their debts, although retailers were continuing to struggle. |
| Begbies has also been feeling the pinch and has axed more than 60 jobs over the past year – 11% of its total workforce – as part of a cost-cutting plan that has saved £8m since 2011. | Begbies has also been feeling the pinch and has axed more than 60 jobs over the past year – 11% of its total workforce – as part of a cost-cutting plan that has saved £8m since 2011. |
| In 2011 it sold its tax division in the wake of government action to close down loopholes. | In 2011 it sold its tax division in the wake of government action to close down loopholes. |
| "Last year was a challenging period for our industry with the number of UK corporate insolvency appointments decreasing by 10% over the 12 months to 31 March 2013," said Ric Traynor, the Begbies chairman. "In this environment we consider that we have delivered a solid financial performance for the year as a result of the ongoing management of our cost base, which has mitigated the impact of lower revenues." | "Last year was a challenging period for our industry with the number of UK corporate insolvency appointments decreasing by 10% over the 12 months to 31 March 2013," said Ric Traynor, the Begbies chairman. "In this environment we consider that we have delivered a solid financial performance for the year as a result of the ongoing management of our cost base, which has mitigated the impact of lower revenues." |
| Begbies Traynor shares fell 4% to 29.25p on Wednesday morning. | Begbies Traynor shares fell 4% to 29.25p on Wednesday morning. |
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