Profits at recovery and restructuring group Begbies Traynor Group Plc have halved following falling levels of UK insolvencies.
The group posted pre-tax profits of £2.4m for financial year ending 30 April 2013, down from £5.5m the previous year.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “Last year was a challenging period for our industry with the number of UK corporate insolvency appointments decreasing by 10% over the twelve months to 31 March 2013.
“In this environment we consider that we have delivered a solid financial performance for the year as a result of the on-going management of our cost base, which has mitigated the impact of lower revenues.”
Begbies Traynor’s group revenues for the year fell by 10% to £51m, as low interest rates and “lenient attitudes by creditors towards financially stressed companies” mean fewer companies are entering administration.
Between April 2012 and April 2013 the company cut 11% of its workforce, from 563 to 501.
In April 2013 the group announced a successful refinancing of its debt facilities replacing its current £35m facility due to mature in 2014, with the majority coming from the M&G UK Companies Financing Fund 2.
Traynor said: “Our new long-term debt facilities, together with the significant reduction in debt over the last 18 months, place the group in a strong financial position.
“This will enable us to consider making organic investments and selective acquisitions, whilst providing confidence in the underlying strength of the group, despite the challenging trading conditions.”