Nice results today from Begbies Traynor Group plc, the UK's leading independent insolvency, corporate rescue and recovery specialist.

http://www.uk-wire.com/cgi-bin/articles/200501070700031148H.html

This ought to make money in both a boom and a recession!
Looks like they've lots of growth to come over the medium term.
I hold with a four year (or longer) view.
Anyone else have an interest?

Found this audio interview whilst doing some research on Begbies Traynor Group, just wanted to share it with you guys, it an interesting listen:

http://www.brrmedia.co.uk/event/99090/ric-traynor-executive-chairman--nick-tatlor-group-finance-director

StockMarketWire.com
Begbies Traynor Group, an ndependent business recovery practice, has reported that a reduction in market activity has led to lower year on year revenue which has been partially mitigated by the contributions from recent acquisitions.

It said the first half, which includes the quieter summer months, is a relatively slow trading period, with the bias of activity expected towards the second half. This expectation remains unchanged following the first four months of the year, in line with the Group's typical seasonal trading patterns.

Executive chairman, Ric Traynor, will tell shareholders at today's AGM: "Market conditions remain challenging, with the Government insolvency statistics worse than expected. An 8% decline was reported in the number of corporate insolvency appointments to 8,948 in the first half of calendar year 2014 compared to 9,727 in the same period of 2013." He will also say: "The financial outturn for the full year will be heavily dependent on trading in our traditionally busier second half. However insolvency market conditions remain challenging, which may impact on performance for the full year.

"With the benefit of a strong financial position and committed bank facilities, we are well placed to continue to take advantage of opportunities to enhance the business through both organic investments and selective acquisitions."

StockMarketWire.com
Business recovery practice Begbies Traynor Group posts a fall in first half pre-tax profits after a 'challenging trading period for our profession'. Revenues fell to £20.8m, from £21.4m, and adjusted pretax profit fell to £1.9m, from £2.3m.

The group said the results were in line with market forecasts.

Executive chairman Ric Traynor 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.

"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.

"Overall, the group remains well placed to take advantage of opportunities to develop and enhance the business, both organically and through selective acquisitions."

Separately, the group announced that it has conditionally agreed to acquire Eddisons Commercial (Holdings), a leading UK-based national firm of chartered surveyors with a specialism in the valuation and disposal of property and business assets.

Under the terms of the Acquisition, an initial £5 million consideration in cash is payable on completion funded through a Vendor Placing and further potential payments, in cash or equity, of up to £3.5 million may become payable contingent on financial performance, namely:

· £1.5 million cash payable on account over four years, with historic payments subject to claw back if the business subsequently underperforms;

· £1.5 million cash or equity payable after four years, based on Eddisons' cumulative performance over the four year review period;

· £0.5 million cash or equity payable between five and eight years post Acquisition.

The group also announced an equity fundraising to raise approximately £5.3 million (before costs)

- £5 million via vendor placing to satisfy initial consideration

- £0.3 million via cash placing for transaction costs

StockMarketWire.com
Begbies Traynor Group plc ("the Group"), the business recovery and property services consultancy, has reported that the number of UK corporate insolvencies in the first quarter of 2015 was 4,014, which represents an 11.3% reduction compared to the same period of last year and is the lowest level of quarterly appointments since the final three months of 2007.

Overall UK corporate insolvency appointments for the year to 31 March 2015 (the period which most closely matches the Group's financial year) were 16,380 (2014: 18,994), representing a 14% year on year reduction.

The company says has maintained its market-leading position by number of appointments and has continued to strengthen its position through the strategy of selected bolt-on insolvency acquisitions. However, this has only partially mitigated the impact of a declining market. As a result, the Board now anticipates that the outturn for the full year will be below market expectations.

The Board has continually looked to manage the Group's cost base to reflect lower levels of overall market activity, the benefits of which have been realised incrementally during the second half of this financial year and will be fully realised in future periods.

Ric Traynor, Executive Chairman of Begbies Traynor Group plc, said: "Whilst it is disappointing to have seen a further decline in the overall insolvency market in the UK, we have maintained our market-leading position and have taken action to align our cost base to current activity levels.

"We have made good progress integrating Eddisons into the Group and we are already starting to realise the synergies that the team's expertise brings to the Group's core insolvency practice."

StockMarketWire.com
Brexit could spell disaster for struggling UK exporters despite a boost from a weak pound, insolvency firm Begbies Traynor warns.

Its latest Red Flag Alert research, which monitors the financial health of UK companies, reveals that 21,061 manufacturers, many of which rely heavily on exporting, ended the first quarter in a state of 'significant' financial distress - 20% higher than the equivalent period last year (Q1 2015: 17,545) - despite the weak pound making UK exports more attractive to international customers.

Of the UK manufacturing sectors covered by the research, the number of food & beverages production companies experiencing 'significant' distress rose the fastest, at 29%, followed by a 21% increase in the broader manufacturing sector and a 17% increase in the automotive sector.

Meanwhile the Red Flag research shows that the UK's financial services sector, which has significant exposure to the European financial markets and investment community, is in a substantially weaker financial position compared to the same stage last year.

The number of UK financial services businesses suffering 'significant' financial distress is up nearly a quarter (23%) at the end of Q1 2016 to 5,391 companies (Q1 2015: 4,383), ahead of a potential Brexit to which the sector has been much opposed.

With growing uncertainty surrounding the outcome of the referendum vote in June, combined with concerns around what any future trade agreements with Europe will look like in the event of a Brexit, difficult questions have been raised over how a Brexit vote could impact the UK's already struggling exporters and financial services industry.

Begbies Traynor partner Julie Palmer said: "Our data shows that the UK's exporting industries are already under significant financial pressure and can ill afford any potential risk to the 50 percent of British exports that go into the EU.

"The Red Flag manufacturing figures show that the threat of uncertainty surrounding the referendum has already put the brakes on this segment of the economy, which should be accelerating with the benefit of recent Sterling weakness, with many UK firms adopting a 'wait and see' approach to any change to the UK's relationship with the EU.

"Considering the current struggles that the UK manufacturing industries are facing, as seen most starkly in the steel industry recently, and the significant potential impact of a Brexit vote, it is crucial that firms make contingency plans for either outcome of the Referendum to avoid further deterioration in their financial health." Executive chairman Ric Traynor added: "Given these figures, the impending threat of a potential Brexit raises difficult questions over how the UK's manufacturing sector will cope with changes in regulation and protracted periods of uncertainty associated with negotiating new trade agreements, and how the UK's financial services firms could withstand any loss of passporting rights, foreign investment or influence over EU regulation.

"The current weakness in the UK's manufacturing industries and financial services sector doesn't bode well for the UK's negotiating power with Europe and indeed other potential trade partners, should Brexit become a reality. If we do leave, the process of agreeing new trade agreements is likely to be a long and drawn out process, so businesses should, in that situation, prepare for the long haul." Story provided by StockMarketWire.com

These companies that are in a state of distress has happened during a period whilst in the EU, you could argue that many of these companies are zombie companies and have only been kept above water by the vast swathes of QE and record low interest rates.
2517

Didn't German factory orders dive last month ,YES THEY DID .

Quite right VICTIM, under normal circumstances many of the companies that BEG are referring to would have gone to the wall and new fitter companies would replace them.
2517

P/W brexit, i would like confermation, if S/P to suffer, company statement. BB

StockMarketWire.com
Business recovery and property services consultancy Begbies Traynor Group posts adjusted pre-tax profits of £2.5m for the six months to the end of October - unchanged from last time.

Revenues were £24.5m (2015: £25.5m) and pre-tax profit of £0.5m was down from £0.6m.

The interim dividend is unchanged at 0.6p per share.

Executive chairman Ric Traynor said: "The Group has delivered another solid financial performance in the period, with results in line with expectations. "This performance reflects the benefit of our diversification into property services, which we anticipate will contribute 30% of the group's revenue and profit for the full financial year. This strategic development has broadened our income streams, so that we are now operating as two complementary operating divisions, each with good market positions and high levels of profitability. "For the year as a whole, we anticipate growth in earnings, in line with expectations, with the benefits of our investment in property services complementing our market-leading, profitable and cash generative insolvency business. We will continue to look for opportunities to develop and enhance the group, both organically and through selective acquisitions. We will provide an update on third quarter trading in early March 2017."

StockMarketWire.com
More than 275,000 companies were showing signs of 'significant' financial distress at the close of 2016, according to new research by Begbies Traynor.

The independent business recovery practice said this represented the 13th consecutive quarter that corporate stress had risen on a year on year basis.

Begbies Traynor's latest Red Flag Alert research showed that 276,518 businesses were experiencing 'significant' financial distress at the end of 2016 - 3% up on the corresponding period in 2015.

On an annualised basis, the last time that 'significant' distress fell year on year was in Q3 2013.

Of the companies experiencing financial distress during Q4 2016, 91% (254,857) were SMEs.

Nearly a quarter (23%) of the country's struggling businesses were in London, where 64,764 companies finished the year in a state of 'significant' financial distress - an increase of 5% on Q4 2015.

Begbies Traynor partner Julie Palmer said: "With the World Bank revising down its growth forecasts for the UK, alongside reports that the UK's trade deficit widened to a worse-than-expected £12.2bn in November, our data shows that levels of financial distress continue to rise across the country, most of all within the UK's important SME community, which is widely regarded as the lifeblood of the economy.

"The scale of SME distress at the end of 2016 just goes to highlight the fragility of UK micro businesses, many of which are underfunded, lack management experience or are flawed in concept.

"Although record numbers of new start-ups continue to join the economy each year, a large proportion don't stay in business for long, with growing numbers of aspiring entrepreneurs returning to more established businesses as soon as the opportunity arises."

Executive chairman Ric Traynor said: "Despite finishing the year in a state of heightened financial stress, it is too early to say that this is reflective of an underlying problem that is likely to continue or negatively impact 2017, as numerous macro indicators suggest that the New Year has got off to a reasonable start.

"EU exit negotiations and US trade policy could be major factors affecting business this year either for better or worse whilst rising inflation and fluctuating exchange rates are likely to have a negative impact.

"Either way 2017 could well be a defining year for UK business."

StockMarketWire.com
Begbies Traynor has seen an improvement in activity levels in its insolvency business in the third quarter and its expectations for the year as a whole remain unchanged.

The group said the improvement in activity levels in the insolvency business were anticipated at the time of the half year results which it reported in December.

An update said: "This leaves us well placed for a strong last quarter albeit our work in progress in both the insolvency and property services businesses includes a number of engagements with fees contingent upon completion prior to the year end.

"The insolvency market has continued to show signs of stability, albeit at historically lower levels of activity, with an estimated 14,706 company insolvencies in England & Wales for the year ended 31 December 2016 compared to 14,657 in 2015."

Executive chairman Ric Traynor said: "Overall, we are encouraged to see some market stability and the increased activity levels typical of the busier winter months for insolvency, complemented by the benefit of our investment in property services.

"We continue to look for opportunities to develop the Group both organically and through selective acquisitions."

StockMarketWire.com
Britain's vital supply chain firms are starting to feel the pinch, with more companies showing increased signs of stress, according to new research from insolvency firm, Begbies Traynor.

Its latest Red Flag Alert showed that in the first quarter levels of 'Significant' financial distress within key sectors of the UK supply chain had risen by 26% on average over the past year following increased cost pressures from rising inflation in both fuel and food prices.

It said this followed the news that UK inflation rose to 2.3% in March, its highest level since September 2013, with transport costs being the biggest contributor, increasing 6.6% over the past 12 months.

Of all the sectors covered by the research, Industrial Transportation & Logistics businesses experienced the largest increase in 'Significant' distress, up 46% year-on-year (Q1 2017: 7,539 companies), with a 16% increase in the Wholesale sector (Q1 2017: 7,706 companies) and a 15% increase in the Food & Beverage Manufacturing sector (Q1 2017: 6,405 companies).

It said: "Worryingly, these negative findings are yet to reflect the recent increase to the National Living Wage that came into effect on 1 April 2017, which is likely to add even more pressure to the margins of these key sectors in the UK supply chain, which have a relatively high reliance on lower paid and temporary workers."

Begbies Traynor partner Julie Palmer said: "Levels of financial distress have increased significantly over the past year, and nowhere more so than in the Transportation and Logistics sector, which continues to be severely hit by ongoing fuel price inflation.

"Given the scale of the increases in distress during Q1, it would appear that food suppliers, logistics firms and wholesalers are yet to fully pass on these rising costs to their customers.

"But it is only a matter of time before we start to see this coming through, especially given the added margin pressures associated with the new National Living Wage.

"Once those costs ultimately feed through to consumers, we'd expect further pressure on sectors exposed to discretionary spending such as retail, bars and restaurants, travel and leisure."

Executive chairman Ric Traynor added: "These figures show that rising energy and food prices, combined with the devaluation of sterling, have undoubtedly put a strain on the much of the UK's supply chain.

"As we wait to see what a future UK trade agreement with Europe might look like, these suppliers face continued uncertainty, not just in terms of their European distribution channels but also with regards to staffing, given their higher reliance on European migrant workers.

"It is clear that UK suppliers, wholesalers and manufacturers can't afford to adopt a 'wait and see' approach - they'll need to rapidly invest to improve their efficiency or renegotiate prices with customers to avoid the risk of falling into more severe financial distress in the coming months."

StockMarketWire.com
New research from Begbies Traynor shows that 329,834 UK companies were experiencing 'significant' financial distress at the end of Q2 2017, a 25% increase from Q2 2016 (263,517 companies)/

The group said this was the largest annual increase since Q2 2014 and was the largest number of corporates experiencing significant distress in at least 5 years. The Red Flag Alert research for Q2 2017, which monitors the financial health of UK companies, showed that SMEs made up the majority of this increase, with 'significant' distress rising 26% to 308,423 businesses, while large companies saw distress rise by just 12% year-on-year to 21,411 businesses at the end of Q2 2017.

It said that among the sectors facing the largest increases in 'significant' financial distress, property and construction saw substantial rises of 32% and 22% respectively, with 28,259 real estate businesses (Q2 2016: 21,373) and 40,495 construction companies (Q2 2016: 33,222) finishing the period in a state of 'significant' financial distress, providing further evidence of a slowdown in the UK housing and construction markets.

Meanwhile, the research showed that the UK sectors most reliant on consumer spending had been hit particularly hard during the second quarter, with volumes of financial distress increasing year-on-year by 22% among leisure businesses (Q2 2017: 8,206 vs. Q2 2016: 6,700), 17% for general retailers (Q2 2017: 25,598 vs. Q2 2016: 21,939), 17% for automotive companies (Q2 2017: 10,741 vs. Q2 2016: 9,161) and 16% among bars & restaurants (Q2 2017: 13,635 vs. Q2 2016: 11,793).

Executive chairman Ric Traynor said: "Our Red Flag research shows that a recent loss of momentum in the economy is putting increased financial pressure on UK businesses, with SMEs bearing the brunt of this rising distress, as businesses contend with uncertainty over Brexit negotiations and an inconclusive election result, alongside rising costs.

"These significant increases in financial distress also point to a slowdown in business investment at a time when the overall growth rate of the UK economy remains stubbornly sluggish."

On the way back up to £2.00!!!!!