Insolvency specialist Begbies Traynor has posted a near doubling of its pre-tax profits, driven by a rise in higher-value corporate failures and sustained demand for advisory services across the UK.
The firm, which is listed on AIM, reported pre-tax profits of £11.5 million for the year to 30 April 2025, up from £5.8 million a year earlier. Revenues rose by 12% to £153.7 million, from £136.7 million in 2024.
Executive chairman Ric Traynor said the results marked the company’s tenth consecutive year of profit growth, adding that the performance was “driven by strong levels of organic growth delivered across our broad range of advisory services”.
The firm said its business recovery division, which accounted for more than half of total revenue, benefited from several large, complex insolvency appointments. These included Speciality Steels, part of Sanjeev Gupta’s struggling GFG Alliance, and Caskade, a major KFC franchisee operating more than 1,000 outlets.
Though the total number of corporate insolvencies slightly declined year-on-year — from 25,408 in 2024 to 23,969 in 2025 — volumes remained high by historical standards. Begbies’ experience reflected a shift toward fewer but more substantial cases.
Revenues from the business recovery division rose 5% to £83.7 million. The group expanded the unit through strategic acquisitions during the year, including Brighton-based White Maund and Midlands firm West Advisory.
Meanwhile, the firm’s advisory division saw a 40% jump in revenue to £23.6 million, supported by a robust pipeline of restructuring work and an uptick in M&A fees.
Investors were rewarded with an 8% increase in the group’s dividend, now 4.3p per share — the eighth consecutive annual rise. In addition, Begbies Traynor announced a new share buyback programme, aiming to repurchase 1 million shares at 5p each. The buyback will be funded from existing reserves, with the group maintaining capacity for further acquisitions and organic investment.
Jamie Murray, research analyst at Shore Capital, said: “The outlook remains positive, with a buoyant insolvency market and continued investment in fee earners expected to support growth. Shares currently trade at a discount to their five-year average and peer group, which we believe is unwarranted given Begbies’ market position.”
He added that the firm’s investment in business recovery and financial advisory capabilities was driving higher-quality mandates and improving margins.
Government insolvency data continues to indicate a challenging landscape for UK businesses, with elevated failure rates providing favourable conditions for firms like Begbies.
Looking ahead, Traynor said: “Activity levels are encouraging, with positive momentum across the group. We expect revenue to be at the upper end of market expectations and another year of profit growth in line with guidance, as we continue to scale and invest in the business.”
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Begbies Traynor profit surges on lucrative large-scale failures
