Begbies Traynor has reported a 15.5% year-on-year fall in revenues and a 34% drop in profits before tax in its half year results to 31 October.
The independent recovery firm cited “difficult market conditions” for the decrease, which was driven in part by a 10% fall in corporate work during the first three months of 2013, as it reported half year revenues of £22.3m (2012: £26.1m) and pre-tax profits of £2.1m (2012: £3.2m).
Ric Traynor, executive chairman at Begbies Traynor Group, said: “This half year period has seen a continuation of the trends seen in the recent past, as we had expected.
“The continuing benign financing environment in the UK has led to further reductions in corporate insolvencies, with a consequent reduction in the group’s revenue.”
The firm posted pre-tax profits of £2.4m for financial year ending 30 April 2013, down from £5.5m the previous year, with revenues falling from £57.7m in 2012 to £51.1m in 2013.
Despite a decrease in financial income during the period, the firm also reported a £2.9m saving as part of its cost reduction programme and an increased internet presence through its acquisition of Manchester-based insolvency boutique Cooper Williamson Ltd.
Traynor said: “We anticipate some improvement in trading levels in the second half of the financial year, over the traditionally busier winter months, and will benefit from the contribution from the recently completed acquisition.
“With the benefit of our reduced cost base, a stable financial position and committed medium and long-term bank facilities, the group remains in a strong position to take advantage of opportunities to develop and enhance the business, both organically and through selective acquisitions.”