AGM Statement and Trading Update

RNS Number : 4979N

Begbies Traynor Group PLC

01 October 2012

 



1 October 2012

Begbies Traynor Group plc

AGM Statement

Trading Update

Begbies Traynor Group plc ("the Group"), the UK's leading independent business recovery practice, is today holding its Annual General Meeting at which Ric Traynor, Executive Chairman, will make the following remarks on the Group's performance in the current financial year commencing 1 May 2012.

Current year trading

"Current year trading reflects the seasonality of the quieter summer months and continuing subdued market conditions, which saw a 12% decline in the number of insolvencies from the first calendar quarter of 2012 (5,772*) to the second quarter (5,065*) and an 8% decline on the comparative period of 2011. The performance of the Global Risk Partners division has stabilised in the period as a result of the on-going restructuring of the business.

The Group continues to focus on managing its cost base, which will incur exceptional restructuring costs of £1m in the period.

* Source: The insolvency service quarterly statistics

Net debt

The Board currently expects net debt at the half year end will be around the level reported at 30 April 2012, comfortably within the Group's banking facilities.

Outlook

Our expectations for the year as a whole remain unchanged, with the financial outturn dependent on trading activities in our traditionally busier months of the year together with wider insolvency market activity levels, supported by the benefits of the Group's cost saving initiatives.

Having successfully reshaped the Group over the last year, we remain committed to growing our cash-generative and profitable business, both organically and through carefully targeted acquisitions which enhance this core business."

Enquiries please contact:

Begbies Traynor Group PLC                                                                0161 837 1700

Ric Traynor - Executive Chairman

Nick Taylor - Group Finance Director

Canaccord Genuity Limited                                                                 020 7523 8350

(Nominated Adviser and Joint Broker)

Bruce Garrow / Adam Miller

Shore Capital                                                                                      020 7408 4090

(Joint Broker)

Pascal Keane

MHP Communications                                                                         020 3128 8100

Reg Hoare / Katie Hunt / Giles Robinson

Information on Begbies Traynor Group can be accessed via the Group's website at www.begbies-traynorgroup.com

 

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