Begbies Traynor Group plc, the specialist professional services organisation, today announces its preliminary results for the year ended 30 April 2008.

Financial highlights

• Revenues from continuing operations of £48.1m (2007: £41.9m):
  - includes £4.3m contribution from acquisitions
  - second half organic growth rate of11% after zero growth in first half
• EBITA was £8.1m (2007:£10m)
• Adjusted* profit before tax was £7.0m (2007: £9.2m):
  -   strong improvement in second half performance compared to first half
• Profit before tax from continuing operations was £5.7m (2007: £8.5m)
• Profit for the year of £1.1m (2007: £5.0m) after a £2.4m impairment charge relating to discontinued operations
• Earnings per share:
  -   adjusted EPS** of 6.0p (2007: 8.0p)
  -   basic and fully diluted EPS from continuing operations was 4.7p (2007: 7.3p)
• Total dividend maintained at 2.5p per share (2007: 2.5p)
• Profit before tax from continuing operations of £5.7m (2007: £8.5m) plus amortisation of £1.1m (2007: £0.5m) plus finance charge arising from the discounting of deferred consideration of £0.2m (2007:£0.2m)

* Profit before tax from continuing operations of £5.7m (2007: £8.5m) plus amortisation of £1.1m (2007: £0.5m) plus finance charge arising from the discounting of deferred consideration of £0.2m (2007:£0.2m)

** See reconciliation in note 6


Operational highlights

• Continued investment in ongoing and new activities:
  -   five acquisitions completed during the year to boostInsolvency and Tax practices
  -   23% increase in direct fee earners during the year increases capacity
• Process underway to dispose of consumer insolvency activity and one other non-core business
• Renewed and enhanced banking facilities agreed in April 2008
• Upswing  in insolvency activity in 2008 continues
  -   high profile engagements including Silverjet, Alphasteel and Carlyle Capital Corporation

Ric Traynor, Executive Chairman, commented:

"The year being reported upon was an extraordinary period for our core business of insolvency administration, which accounts for over 75% of Group continuing revenues. Following one of the quietest periods for corporate insolvency in nearly 20 years, reflecting the ready availability of easy credit, the advent of the credit crunch through the autumn of 2007 resulted in a significant change in activity levels. I am therefore pleased to announce improved insolvency performance in the second half.

"We start the new financial year with an enhanced insolvency platform, a replenished insolvency case load and market indicators which continue to predict stronger demand in this, our counter-cyclical core business.  We therefore look forward to a sustained period of improved new work flow and insolvency returns.

"Overall, activity levels at the start of the current financial year are well ahead of the same period last year and we will provide an update on progress at the time of the Company's AGM in October."

Final Results