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Rising bankruptcies have given trading at boost at insolvency specialist Begbies Traynor with its business in this division "ahead of expectations".

"I am pleased to report that the current financial year has started well for the group, with current trading in line with management expectations, reflecting in particular the strong trading of the insolvency division," chairman Ric Traynor said ahead of its AGM.

"The group`s core business of insolvency administration, which accounts for approximately 75% of the group's overall turnover, has continued its good progress and is trading ahead of management expectations and significantly ahead of the same period last year," he added.

On the flip side, the group's corporate finance division has experienced challenging market conditions in recent months, as both debt and equity funding appetite has diminished.
This reflects the general market conditions for insolvency services given the current economic conditions prevailing in the UK and the benefits of our significant investment in expanding the practice in recent years.

(BEG.L: Quote, Profile, Research) said on Friday it was benefitting from worsening economic conditions in the UK with second-quarter trading starting well.

The business rescue and asset recovery company said its insolvency division, which accounts for three-quarters of group revenues, was performing well ahead of expectations due to the tough economic conditions in Britain.

"The current financial year has started well for the group, with current trading in line with management expectations...This reflects the general market conditions for insolvency services given the current economic conditions prevailing in the UK ," Executive Chairman Ric Traynor said in a statement.

Looking ahead, Begbies, which typically does well when smaller businesses are doing badly, said it would focus on mid-market insolvency, which is experiencing an upturn in activity resulting from the worsening economic outlook.

The group said it was in a healthy financial position following the recently completed placing of new shares that raised 13 million pounds ($24 million) before costs, which will provide further working capital to support planned growth in its insolvency business.

The company's corporate finance division has experienced challenging market conditions in recent months, however, as both debt and equity funding appetites had diminished, Begbies said.

Begbies Traynor's shares have outperformed the FTSE All Share support services index .FTASX2790 by over 30 percent in the last three months.

The company's shares closed 1.6 percent down at 177 pence on Thursday, valuing it at around 143 million pounds. (Reporting by Rhys Jones; Editing by Greg Mahlich) ministration.