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Port Vale administrators see profits drop slightly

Football News 24/7
Accountancy firm Begbies Traynor saw revenue and profits fall in the first half due to fewer insolvencies.

The Manchester headquartered group, which specialises in insolvency and restructuring, said its figures had been affected by the quieter summer months but it expects its full-year results to be in line with 2011-12.

In the six months to the end of October revenue fell 11% to £26.1m while pre-tax profits dropped from £3.4m to £2m.

After adjusting profits for amortisation, finance charges and exceptionals it made £3.2m, down from £4.1m.

The group, which has more than 30 offices including Stoke, Preston, Blackpool, Liverpol and Chester, has slimmed down its structure in recent years, merging corporate finance into the insolvency business and selling the tax consulting arm.

It now consists of the core insolvency and restructuring service, a fraud and forensic investigating division known as Global Risk Partners and its Red Flag Alert credit risk database.

Insolvency accounted for £24m of the turnover, while profits were £6m, down from £7.2m.

High profile cases during the period were Port Vale Football Club, Twickenham Film Studios and United Carpets. Revenues slipped from £2.6m to £2.2m in the forensics arm. Port Vale were sold out of administration in November to the Alchemy Group.

Chairman Ric Traynor said: "Challenging market conditions have persisted with lower levels of activity in the insolvency market over the summer months. Overall, this led to a group performance with lower revenues and profits than the comparative period. In spite of this, the business remains profitable and continues to generate good operating margins through on-going management of the group's cost base.

"We anticipate an improvement in activity in the second half of the financial year during the traditionally busier winter months. Given this, we currently anticipate that the group's performance for the year as a whole will be broadly in line with last year. We will provide an update on third quarter trading in early March 2013."

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