Begbies booms as failures grow

BUSINESS is booming at Britain's busiest firm of liquidators. Begbies Traynor, which floated on the Alternative Investment Market three months ago, said the value of new work is ahead by about 35% on a year ago.

Maiden interim results show operating profits of £1.75m on billings of £11m in the six months to the end of November.

The former private partnership of insolvency accountants has not published comparable prior-year profits and billings figures. The results from Begbies, the leading independent alternative to the Big Four firms, come amid dire warnings of increased insolvency activity.

A recent survey by rival Grant Thornton reckoned that personal insolvencies have grown 28% year on year while BDO Stoy Hayward predicts a growth in corporate failures in a slowing economy.

Quoted carpets company Stoddard went into receivership this week while privately owned Pilot, a 70-strong clothing shops chain, has also gone bust.

Begbies shares today opened at 55 1/2p, a near-40% premium to their 40p placing price. Chairman and majority shareholder Ric Traynor's stake is now worth almost £20m.