Begbies prepares for boom on UK plc’s gloomy outlook

Insolvency specialist Begbies Traynor is poised for a business boom as retailers and second-hand car dealerships face tough times in a slowing economy.

A year ago Begbies was laying off staff as corporate insolvencies fell.

However, chairman Ric Traynor says he is now “starting to see an increase in activity” as uncertainty grows.

That uncertainty, he adds, has swept through the whole country. “Anything consumer facing is having a hard time.

“A few months ago it was only Brexit that was of concern. Now it is, ‘Who is the government going to be in six months’ time?’”

Begbies is seen as a good measure of the wider economy. When it starts to do well, that suggests others are not.

In the year to April revenues were steady at £49.7 million. The property arm which does surveying and auctions is now a third of the business, offsetting times when there is less insolvency work.

Profit was up by £400,000 to £4.9 million, allowing it to hold the divi at 2.2p.

Traynor told the City: “We remain the leading UK corporate appointment taker by volume and are well-positioned to take advantage of the cyclical nature of the market. Looking forward, we anticipate a growth in earnings.”

The shares today moved up 1% to 50p.