Begbies says full year results will miss targets

RESTRUCTURING specialist Begbies Traynor Group said it expected full-year results to be below market view due to weaker-than-expected performance of its tax division, even as it posted a 32 per cent rise in first-half adjusted pre-tax profit.

The company, which helps salvage struggling companies, said it expected its tax business to return to profitability in the second half of the current financial year.

Begbies also raised its interim dividend by 9 per cent to 1.2 pence, from 1.1 pence last year.

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For the six months ended October 31, the company said its adjusted pretax profit rose to 4.3m from 3.3m last year.

Revenue from continuing operations increased 21 per cent to 34.2m.

"Beyond the current financial year, we expect the group to make considerable further progress as a result of anticipated rises in the level of insolvencies in the second half of the calendar year 2010," Chairman Ric Traynor said in a statement.

Begbies shares were down 6.6 per cent at 99 pence on Thursday on the London Stock Exchange.