Begbies Traynor today offloaded its insolvency and restructuring division in the Channel Islands to Grant Thornton for £250,000.
The group’s global risk partners division is to maintain a presence in the Channel Islands, but future international restructuring assignments will be handled through the company’s BTG Global Network and the joint venture BTG Mesirow.
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 £300,000 (2010: £500,000), with trading losses of £200,000 (2010: £400,000).
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, said the sale represents “another step forward” for the company.
He added: “The Group retains the capacity to work on international restructuring engagements through our BTG Global Network association and the BTG Mesirow joint venture.”