Insolvency specialist suffers due to economic recovery
Corporate recovery specialist Begbies Traynor said it swung into the red and was forced to cut jobs as insolvencies fell to the lowest level since the start of the financial crisis.
The Manchester-headquartered group - which has an office in Belfast - blamed another "challenging year" for the insolvency industry as it posted bottom-line losses of £700,000 for the 12 months to April 30 against profits of £4.3m the previous year.
Britain's economic recovery has seen a sharp fall in the number of firms getting into financial difficulty, with insolvencies 14% lower in the year to the end of March.
Begbies said this directly hit its results, although bottom line figures were also impacted by acquisition and restructuring costs.
Underlying pre-tax profits slumped by a third to £3.6m.
The group said it cut the workforce in its core insolvency division from 391 to 354 over the financial year as it looked to reduce costs to offset the lower levels of business.
Ric Traynor, executive chairman of Begbies, said: "It was another challenging year for the insolvency industry, with national volumes at their lowest level since 2007."