Begbies Traynor has cut its insolvency headcount by 6.2% as the firm continues to focus on its cost base.
The insolvency specialists stated headcount was reduced from 501 to 470, according to its trading update for Q3 ending January 31 2012.
Begbies also confirmed “ongoing efficiency initiatives” will accrue exceptional short-term costs with the benefits “to be realised in future periods”.
Despite a “subdued” UK insolvency market the core insolvency and restructuring division recorded “improved” profits and margins for the first nine months of the financial year.
The report stated: “Activity levels in the UK insolvency market remain subdued, due in part to the continuation of the benign financing environment of low interest rates, whilst the realisation of assets remains constrained.
“The outcome for the year will be dependent on performance in the final quarter, historically a busy trading period.
“In light of the trading environment, we continue to focus on our cost base.”
In January this year, Begbies offloated its insolvency and restructuring division in the Channel Islands to Grant Thornton for £250,000.
Executive chairman Ric Traynor added: ““Our core insolvency business has maintained its market leading position and continues to benefit from cost savings, resulting in improved profits and margins.
“The group outcome for the financial year as a whole will be dependent on the important final quarter’s trading.
“Having made good progress with our disposal programme, we remain highly focussed on maximising the performance of the core businesses.”