Business
AGM Statement and Trading upd
AGM Statement and Trading upd.
About this update from Btg Consulting Plc
[{"type":"text","content":"\n RNS Number : 5595T Begbies Traynor Group PLC 30 September 2010 \n \n\n \n \n \n \n \nBEGBIES TRAYNOR GROUP PLC\n(\"the Group\")\n \nAGM Statement\n \nTrading Update \n \n \nBegbies Traynor Group plc, the specialist professional services consultancy, is today holding its Annual General Meeting.\n \nRic Traynor, Executive Chairman, will make the following remarks at the AGM:\n \n\"Group trading in the first four months of the current financial year has been in line with market expectations for the year as a whole. \n \nThe Market\n \nAs referred to in the Group's final results announcement in July 2010, activity levels in our core insolvency business, which accounts for 80% of Group revenues, are significantly influenced by the number of UK insolvencies.\n \nGovernment insolvency statistics for the second quarter of calendar year 2010 (announced by the Insolvency Service in August 2010 following the Group's final results) showed an 18% decrease in the number of insolvency procedures to 5,405 from 6,588 in the same period in the prior year and a 2% decrease compared to the first quarter of calendar year 2010. This represents the sixth consecutive quarterly decline in corporate insolvencies. \n \nThe Group's view is that this continuing decline has been caused by the combination of lenient creditor attitudes and temporary government support initiatives, including quantitative easing, time to pay schemes and low interest rates.\n \nCurrent Trading & Financial Position\n \nActivity levels in the insolvency division have been constrained by the market conditions described above. However, this has been partially mitigated by improved performance in the Group's non-insolvency businesses which, as expected, have benefitted from the restructuring of these operations in the previous financial year. \n \nThe Group expects a cash outflow in the first half of the financial year following an increase in working capital lock up, reflecting a lengthening in the cycle of insolvency cases due to economic conditions. Further investment has also been made in the Group's organic and acquisitive development, including the acquisition of Tomlinsons earlier in the period. The Group remains comfortably within its banking f...