Channel Islands Disposal

RNS Number : 5803V

Begbies Traynor Group PLC

16 January 2012

 



16 January 2012

Begbies Traynor Group plc

Disposal of Channel Islands Insolvency and Restructuring business

Begbies Traynor Group plc (the "Group"), the specialist professional services consultancy, today announces it has completed the sale of its Channel Islands Insolvency and Restructuring business to Grant Thornton Limited for a maximum consideration of £0.25m.

The Group's Global Risk Partners division will maintain a presence in the Channel Islands following this sale. Future international restructuring assignments will be handled through our BTG Global Network association and the BTG Mesirow joint venture.

For the six months ended 31 October 2011, the Group's offshore insolvency operations, comprising Channel Islands, Cayman Islands and Kenya, generated combined revenue of £0.3m (2010: £0.5m), with trading losses of £0.2m (2010: £0.4m).

As previously announced, following a strategic review the Board decided to focus on the two profitable core businesses of UK insolvency and restructuring and the BTG Global Risk Partners forensic, investigation and risk management business and divest its loss making non-core operations.

In line with this strategy, in addition to the sale announced today, the Group disposed of its tax business in November 2011 to Smith & Williamson Holdings Limited, for an initial consideration of £2.9m payable in cash on completion, closed its Cayman Islands business and continues to make progress with the divestment of its Red Flag and Kenyan insolvency operations.

Ric Traynor, Executive Chairman of Begbies Traynor Group, commented:

"This sale represents another step forward as we focus on our two core businesses (UK insolvency and Global Risk Partners). The Group retains the capacity to work on international restructuring engagements through our BTG Global Network association and the BTG Mesirow joint venture."

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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)

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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