INSOLVENCY experts Begbies Traynor today said it expects its first half pre-tax profits to be about £700,000 lower than last year’s £4.3m figure.
This is due to an increase in finance costs for new banking facilities, exceptional restructuring costs of £800,000 and a 9% fall in insolvency revenues.
Today’s trading update said gains in non-insolvency operations helped offset the decline, which it expects to improve in the second half of the year.
The firm, which has a Liverpool office in Old Hall Street, said UK insolvency rates are lower than anticipated due to a mixture of lenient creditor attitudes and temporary Government support schemes.
But it believes once these initiatives start to unwind and the public service cuts start to hit, insolvencies will increase.
Results for the first six months to October 31 will be released next Thursday, December 16.
