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Sterling has today picked up sharply after weeks and weeks of pressure and selling by investors. This comes just ahead of the MPC meeting to decide their next move on UK base rates and until just a...
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Wednesday 9th July 2008
While the corporate insolvency experts Begbies Traynor may have reported a fall in 2007/2008 profits to £5.7 million it seems that the worse the economy gets in the UK, the better the environment for their services. Even though the fall from a £8.5 million profit last year to £5.7 million this year was disappointing, the company did comment that this had been one of the quietest periods in the insolvency sector for over 20 years. But times are changing!
Having won the contract to look after the on-off insolvency of SilverJet and Alphsteel the company seems to have a relatively full order book going forward, with many more troubled companies set to join the ranks. Profits for 2009 are expected to bounce back to around £9.9 million (according to a straw poll of analysts) and probably move higher in 2010 due to the time lag between companies hitting trouble, and Begbies Traynor being able to book their fees.
It will be interesting to watch the share price of Begbies Traynor as the company prospers as the economy falters, and with stock markets traditionally said to look up to 18 months ahead, the performance of the share price may be an interesting indication of future economic activity. |
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