Begbies Traynor has today (12 December) announced revenues of £20.8m for the first half of 2014, a year-on-year drop of 3%.
The firm said revenues were “in line with market expectations”, while profits before tax fell from £2.2m to £1.5m during the same period.
In a separate statement, the company announced the acquisition of chartered surveyors Eddisons, as part of its “strategy to enhance its market-leading insolvency practice through developing complementary service offerings”.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “Despite a challenging trading period for our profession, with reductions in national insolvency volumes to the lowest level since 2007, we have continued to trade profitably, with results in line with market expectations.
“We have mitigated the full impact of market conditions through acquisitions completed in the current and prior year and continued cost discipline, and we have retained our market-leading position in terms of number of insolvency appointments.”
Begbies pointed to a 16% overall decrease in corporate insolvencies during the six months to 30 September 2014 compared to the year previously as a detrimental factor on revenues.
However the company has reduced its net debt from £17.8m to £16.2m in H1 2014.
Traynor said: “We anticipate some improvement in trading levels in the second half of the financial year, over the traditionally busier winter months as we experienced in the previous financial year.
“The last four months of the financial year will also benefit from the post-acquisition trading profits from the Eddisons acquisition announced today, which is expected to be earnings enhancing in the current financial year.”
Begbies acquired corporate insolvency firm Ian Franses Association Ltd in June and Manchester-based rival Cooper Williamson Ltd in October 2013.