Begbies Traynor Group is anticipating an increase in businesses entering insolvency during the second half of its financial year.
The Manchester-headquartered the business recovery, financial advisory and property services consultancy, made the statement as it revealed its performance during the six months to the end of October 2021.
The listed company has reported a group revenue of c.£52m for the period, up from £37.5m, while its pre-tax profits increased from £5m to c.£8m.
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The rise in profits has been attributed to the benefit of acquisitions completed since January 2021.
In a statement to the London Stock Exchange, the group said: "We expect our results will have a second half weighting as we anticipate an increase in insolvency activity over the remainder of our financial year (to 30 April 2022).
"Overall, we remain confident of delivering market expectations for the full year, which will represent a year of significant growth.
"The insolvency market has been suppressed since March 2020 due to Government support measures during the pandemic.
"However, since May 2021, the Insolvency Service has reported month on month increases in insolvency appointments nationally as these support measures have been removed.
"The increases to date have predominantly been in liquidations (which typically represent insolvencies of smaller companies), where the volume of appointments has now returned to pre-pandemic levels.
"We have increased our share of this market segment in the year by volume.
"Although the number of administrations (which typically involve larger and more complex instructions) has increased in recent months, they are currently significantly below pre-pandemic levels."
