Begbies Traynor takes ‘haircut’

Insolvency practitioner Begbies Traynor has raised only £4.9 million on joining AIM, rather than the £12 million it wanted to pull in.

The group’s circuitous route to market took two months longer than envisaged ‘because of the summer holidays’, according to chairman Ric Traynor.

Begbies Traynor decided to float, in order to accelerate growth, by recruiting several experienced people and opening new offices. However, broker Teather & Greenwood managed to raise only £4.9 million at 40p from investors including ISIS, valuing the company at £26 million.

In the year to April the group made £4 million pre-tax on turnover of £22 million. Since then the company has been appointed to deal with the insolvency of Karrimor, a manufacturer of clothing and equipment for outdoor pursuits.

Traynor plans to double in size over three years. ‘We believe our new status as the only publicly quoted insolvency and corporate rescue specialist will enhance our profile and help open the door to higher-value assignments,’ he comments.

However, some of the float proceeds will repay loans to shareholders, rather than fund growth. The company, with 23 offices now, plans to pursue acquisition opportunities, too.

Leslie Copeland

Leslie Copeland

Leslie was made Editor for Growth Company Investor magazine in 2000, then headed up the launch of Business XL magazine, and then became Editorial Director in 2007 for the online and print publication portfolio...

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