Insolvency firm's profits almost double as larger firms fail
The group, which achieved its 10th consecutive year of growth, reported pre-tax profits jumped from £5.8million to £11.5million in the year ending April, while its adjusted earnings before nasties rose by 11 per cent to £31.7million.
Its turnover increased by 12 per cent to £153.7million after organic revenues climbed by 10 per cent, thanks to strong performances across both divisions.
It follows a rise in insolvencies across England and Wales as firms buckled under the pressure of higher labour costs associated with last year's Autumn Budget.
Begbies Traynor's business recovery and advisory arm saw sales expanded by 11 per cent to £107.3million owing to higher advisory fees from restructuring projects and special situations mergers and acquisitions income.
The segment was also boosted by the takeover of insolvency firms West Advisory and White Maund, as well as greater activity from bigger, higher-value cases.
This was despite the total volume of corporate insolvencies in the UK declining by around 6 per cent to 23,969 in the year ending April 2025, according to figures from the Insolvency Service.
The overall number of administrations, which usually involve larger and more complex instructions, also shrank from 1,663 the previous year to 1,549.
Nonetheless, Begbies Traynor said its insolvency order book jumped by £6.7million to £78.6million.
Meanwhile, turnover in its property advisory arm grew by 15 per cent to £46.4million on the back of an uptick in property auctions.
Following the trading update, Begbies Traynor shares jumped 9 per cent to 121p by the late morning, taking their gains to about 23 per cent since the year started.
Last year, Begbies Traynor was appointed the administrator for SH Structures, a steelwork business that provided the steel for Murdoch's Connection bridge in Hull, and The Kelpies, a collection of horse-head sculptures near Falkirk in Scotland.
It also became Torquay United's administrator after the financially-struggling football team was unable to find a buyer. The club eventually exited administration in late April, having completed the terms of a company voluntary arrangement.
Begbies Traynor previously worked on the administration of Wrexham, Port Vale and former Premier League sides Huddersfield Town and Wigan Athletic.
In the current financial year, the Manchester-based firm anticipates revenue hitting the top end of market expectations alongside further profit growth.
Ric Traynor, its executive chairman, said: 'Looking forward, activity levels are encouraging with positive momentum across the group. We have increased the scale of our teams, and market conditions are supportive.'
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