Leading UK Insolvency Experts Begbies Traynor have reported of a increase use of their services. Revenue and profits have risen for the Company for the first half of the year.
The Insolvency Firm which assists financially struggling businesses to recover saw revenue increase by 39% from 37.5m in 2020. This saw their profits before tax increase to 2.7m up to the 31st October 2021.
These figures were in line the the Company’s market predictions for a wave of Company insolvencies following the ending of government pandemic support measures.
Temporary measures were introduced in to protect businesses from insolvency during the pandemic and were phased out from the 1st of October. Thousands of UK Businesses have struggled since as the economy continues to recover, all be it at a slower pace than anticipated.
Businesses in financial distress as a consequence of the pandemic had been protected from creditor insolvency action since June 2020, via the Corporate Insolvency and Governance Act 2020.
“I am pleased to report a strong financial performance in the period, which is a testament to the benefit and integration of our recent acquisitions and maintains our track record of growth in revenue and adjusted earnings,” said chief executive Ric Traynor, referring to the company’s purchase of a team from chartered surveyors Fernie Greaves in October and MAF Finance Group in May.
“This strong performance, and an anticipated increase in national insolvency numbers following the removal of the Government’s pandemic support measures, leaves us confident of delivering market expectations for the full year,” he continued.
The company strengthened its accounts by increasing net cash to £1.2m over the period. Investors in the Company received an interim dividend pay-out of 1.1p per share while losses per share declined from 0.3p to 0.2p.
These ‘predictions’ are seen as a red flag to many that Businesses need to take action quickly if they are owed money. Thousands of small businesses go bust every year by not taking direct action. Previous reports have suggested that debt collection action could have saved 50,000 thousand SME’s in the UK.
The profile of many highly successful debt collection agencies has risen due to the pandemic where it has seen late payment increase hugely for small businesses. As many as two in three Small Businesses have reported an increase in late payment in certain areas of the UK.
Across the water, Ireland is facing a similar situation. Companies have been looking for suitable debt collection in Ireland solutions before the predicted tidal wave by Deloitte, begins.