THE Business restructuring and advisory firm Begbies Traynor, who handled Worcester Warriors' administration process, is set to reveal sales and profits ahead of targets after being boosted by a jump in corporate collapses.
The Manchester-based firm said it has seen insolvency numbers continue to rise over the past year as firms feel the pressure of soaring cost inflation and reduced consumer spending.
Over the last year, the company has worked on administrations for high street stationery chain Paperchase, which shut its 106 shops due to insolvency, and Worcester Warriors, who have since been sold to new owners, Atlas.
Begbies were appointed back in September 2022 when Warriors were placed in administration and kicked out of the Gallagher Premiership by the RFU.
But after 10 months, Begbies finally sold the company to Atlas, who are directed by former Warriors chief executive Jim O'Toole and ex-London Irish forward James Sandford.
They have since confirmed Warriors might not return for a number of years and that new tenants will be brought in to help create income. Warriors Women and Worcester Raiders look set to play from the 11,000-seater stadium.
On Monday, Begbies Traynor told shareholders revenues are expected to have risen by 11% to £122 million over the year to April 30 – compared with the previous year.
Meanwhile, pre-tax profits are due to have grown by 16% to £20.7 million for the year.
Begbies Traynor hailed "good organic growth" in business recovery activities, which have increased 6% over the year as insolvency market volumes "continued to increase".
This included jumps in the number of liquidations beyond pre-pandemic levels and a rebound in administrations, although these remain below historic levels.
The group has also benefited from a continued strategy of acquisitions, including a recent deal to snap up Banks Long & Co.
Ric Traynor, executive chairman of Begbies Traynor, said: "We performed strongly in the financial year, with results ahead of market expectations, aided by our increased scale and enhanced reputation in mid-market insolvency.
"We have further developed our range of services, extending both our financial advisory business and property advisory services through earnings accretive acquisitions principally funded by strong cash generation.
"Our strong financial position leaves us well placed to continue to invest in the business, both organically and through acquisitions, to continue building our scale and range of complementary services."
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