Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Begbies Traynor predicts surge in insolvencies following budget impact

by November 18, 2024
November 18, 2024
Begbies Traynor predicts surge in insolvencies following budget impact

Begbies Traynor, one of Britain’s leading corporate restructuring firms, anticipates a rise in the number of businesses facing financial distress in the coming months due to the recent budget changes.

The company expects that the Chancellor’s decision to increase employers’ National Insurance contributions will exacerbate cost pressures on businesses already grappling with economic headwinds.

While the increased National Insurance will cost Begbies Traynor approximately £1.25 million annually, the firm believes it may ultimately benefit from the heightened demand for its insolvency and restructuring services. Executive chairman Ric Traynor stated, “Additional headwinds for UK business from increased employment costs and the prospect of higher for longer interest rates are likely to extend the period of elevated insolvency levels, increasing the need for advice and support from our insolvency and business recovery professionals.”

Employing around 1,000 staff across the UK, Begbies Traynor is best known for its insolvency expertise but also offers a range of professional services including accounting, chartered surveying, banking, and legal advice. The firm assists businesses with forensic accounting investigations, commercial property valuations, and corporate restructurings.

During the pandemic, government support schemes kept many struggling businesses afloat, resulting in a slower period for insolvency and administration cases. However, the past 18 months have seen a surge in Begbies Traynor’s workload due to rising interest rates and a cooling global economy. Notable administrations handled by the firm over the past year include Worcester Warriors rugby club and the stationery retailer Paperchase. It also managed the receivership of Britishvolt’s electric battery site in Northumberland.

To meet increasing demand, Begbies Traynor has expanded its team of insolvency specialists. In the first half of its current financial year, from May to October, the company’s revenue and pre-tax profit rose by 16% compared to the same period last year, reaching approximately £77 million and £11.5 million, respectively. Traynor remarked that the six months represented a “very good start,” with growth driven by “positive momentum across the group.”

The board expressed confidence in meeting market expectations for the full year, with analysts forecasting an adjusted pre-tax profit of around £23.7 million. This would mark the eleventh consecutive year of profit growth for the firm.

Industry analysts are also optimistic. Jamie Murray of Shore Capital commented, “Insolvency volumes are at elevated levels compared to the pre-Covid zero interest rate environment. We expect this to be sustained for longer, given the impact the budget will have on UK businesses. This should be beneficial for Begbies’ business recovery and advisory business.”

However, Murray adjusted his profit forecasts for 2026 and 2027 downward by 5%, citing the additional National Insurance contributions the firm will have to pay from next April. On Monday morning, Begbies Traynor’s shares edged down by 0.6% to 93p, valuing the company at £150 million.

Read more:
Begbies Traynor predicts surge in insolvencies following budget impact

0
FacebookTwitterGoogle +Pinterest
previous post
Trump’s tariff plans could cost UK economy £20bn, analysts warn
next post
Fetterman calls out ‘UN’s rank, pervasive antisemitism,’ says he looks forward to confirming Elise Stefanik

You may also like

How I earn passively with KSD Miner: My...

November 4, 2024

Rokt Partners with Oracle Red Bull Racing to...

February 3, 2023

Getting to Know You: Kashane Walters, Finance Manager

November 16, 2022

4 Go-To Ways To Increase eCommerce Sales

August 30, 2023

F1 Arcade secures £30M for global expansion

June 12, 2023

Presenter Kaye Adams wins IR35 case against HMRC...

November 29, 2023

Temu: How Can I Make A Change or...

March 17, 2023

How to increase productivity from your workforce

February 18, 2025

One in five businesses have been victims of...

December 7, 2023

UK employees expect businesses to set corporate flying...

November 3, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • The Best Five Sectors, #22

      June 9, 2025
    • Half of Brits would trust AI for legal advice, survey finds – but experts urge caution

      June 9, 2025
    • Business leaders paralysed by risk warn BDO as caution stifles growth

      June 9, 2025
    • Starmer pledges £1bn investment to supercharge UK tech and AI infrastructure

      June 9, 2025
    • 5 terrifying flashpoints that could ignite global war

      June 9, 2025
    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025

    Categories

    • Business (8,161)
    • Investing (2,019)
    • Politics (15,572)
    • Stocks (3,137)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved