Bankruptcy firm to float on Aim

BEGBIES Traynor has unveiled plans to become the first bankruptcy specialist to list on the stock market.

The company, whose high profile cases have included the collapse of the Accident Group last year, expects to raise between £4m and £12m by floating on the Alternative Investment Market on 27 July.

Directors claim it is the UK's largest independent insolvency, corporate rescue and recovery specialist. They want to raise money for opening new offices, recruiting new staff and for acquisitions. More importantly, said chairman Ric Traynor, the company can improve its profile.

'As a publicly quoted company our size and range of activities will be considerably more visible to our target corporate market, and should strengthen our hand when we are competing for larger assignments,' he said.

In the year to April 2004, turnover was just under £22m and pre-tax profit was more than £4m. Broker Teather & Greenwood is acting as adviser.

Recent figures from the Department of Trade and Industry revealed the number of companies that became insolvent fell to 3,155 in the first quarter of 2004, 4.6% fewer than the three months to the end of December and a 14.3% drop on the same quarter of 2003.

However, Begbies said it can rely on an increase in the value of deals it undertakes during economic recoveries. It also said cases often take three years to resolve so work is spread across leaner times.

CARIBBEAN-based online betting firm BetonSports will join Aim on Thursday after a placing of 39m shares at 140p to raise £54.6m. Half of this is being used to buy half of the founders' shares and half for geographic expansion. The fast-growing firm will be capitalised at £114m.