max temp: 15°C

min temp: 15°C

ESTD 1874 Search

UK: Insolvency Service reports fewer business failures during final quarter of 2012

16:06 01 February 2013

Shay Lettice of Peters Elworthy & Moore, east region chairman of R3

Shay Lettice of Peters Elworthy & Moore, east region chairman of R3

Roger Adams Photographer 2011

BUSINESS failures during the final quarter of 2012 showed a sharp fall compared with a year earlier, figures from the Government’s Insolvency Service showed today.


Company liqudiations, both compulsory and voluntary, fell by 10.7% compared with the last three months of 2011 to 3,834.

The number of companies entering administration was 11.9% lower at 580, receiverships fell by 14.9% to 276 and company voluntary arrangements were 20.9% down at 151.

With the exception of companies entering administration, the totals were also down compared with the third quarter, despite the Office for National Statistics’ recent estimate that the UK economy slipped back into negative growth during the final three months of 2012.

Personal insolvencies also fell during the final quarter to 25,302, 12.9% down compared with the same period a year earlier.

Shay Lettice of accountancy firm Peters, Elworthy & Moore, who is eastern region chairman of R3, the organisation for insolvency professionals, said the figures on business failures were welcome news amid fears of a “triple dip” recession.

“Low insolvency rates are good for employment, and our relatively flexible insolvency regime has allowed many insolvent businesses, especially in the retail sector, to emerge from administration with some jobs or stores intact,” he said.

However, he added that while the numbers on personal insolvency were encouraging they only represented part of the picture as they did not include informal insolvency procedures, such as debt management plans, or those who had averted insolvency only by resorting to taking out payday loans.

Mike Jervis, business recovery partner at PricewaterhouseCoopers, said the drop in overall company insolvencies was down to “low interest rates, supportive lenders and frankly the lack of options if insolvency actually occurs”.

However, he warned that the position could change quickly, added: “Administration numbers ticked up 6% quarter on quarter and January has produced a number of high profile failures.

“Management teams are far more focused on cash, costs and survival than in previous downturns and continuation of these disciplines is not optional.”

James Money, corporate recovery and insolvency partner at PKF, said: “As we have seen during the first few weeks of the year, the high street is having a difficult time and the construction sector is under pressure as well. We’re also starting to see more business failures in the professional and financial services industries.”

He added: “Given little sign of any meaningful economic recovery, we do not expect the figures to maintain their downward trajectory for much longer.”



The presentation of the Gold award in the Community Relations Campaign category to Essex County Council at the CIPR Anglia Thames & Chiltern Pride Awards 2015

Photo:  Steve Pope - FOTOWALES

Public relations professionals across East Anglia have received recognition in the regional round of the 2015 PRide Awards.

New report on prosperity in seaside towns

New research has highlighted the importance of entrepreneurs in helping to revive seaside towns that have fallen into decline and unlock further potential in those already prospering.

Dan Poulter with employees at B&Q

A Suffolk MP has said he will do what he can to try and prevent a B&Q store closing down with the potential loss of around 100 jobs.

Dr Aled Jones, Anglia Ruskin University.

The director of Anglia Ruskin University’s Global Sustainability Institute (GSI) is in the running to be named the greenest academic in the UK.

Helen Drage,  co-founder of Drage & Tozer Opticians.

Sudbury opticians firm Drage and Tozer, founded in 1995 by Helen Drage and Sandra Tozer, has celebrated 20 years in business by expanding into new premises.

Val Carrol, director of healthcare at Beckett Financial Services, receives the company’s Commendation at the Investment Life & Pensions Moneyfacts awards from comedian Tim Vine.

Bury St Edmunds-based Beckett Financial Services has been recognised by a national financial services publication for delivering outstanding levels of customer satisfaction to its healthcare clients.

Meadows Montessori School pupils Spencer, Luke and Ben, aka the Flower Pot Men, with The Apprentice 2014 winner Mark Wright who presented their trophy for winning the Best Community Engagement category of the Fiver Challenge Awards , supported by Virgin Money.

Pupils from the Meadows Montessori school in Ipswich have been named among the winners in the Fiver Challenge, run by the Young Enterprise programme.

From left, Michael Francis, store manager, Colchester, Robert Smith, dealer principle, Colchester and Norwich, and  Emmanuel Greffier, store manager, Norwich with the Bang & Olufsen UK Partner of the Year trophy.

The team at the Bang & Olufsen store in Colchester is celebrating after beating off competition from 60 other dealerships to be named as the audio equipment firm’s UK Partner of the Year.

Kelly-Anne Byres of Poppy Nursing and Care Services.
Picture: Stephen Waller  www.stephenwaller.com

Five businesses and organisations from Suffolk and north Essex have been named among the finalists in the 2015 East of England Business Champions awards.

The Nestle Purina site in Sudbury

A Sudbury pet food factory is under increasing pressure to tackle foul odours as it is revealed an environmental regulator recorded 40 stench complaints since last month.

Most read

Most commented

Topic pages