Sunny

Sunny

max temp: 5°C

min temp: 1°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.

shares

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.”

shares

0 comments

Delegates at an Innovation Martlesham event this week celebrating the inclusion of Ipswich in the new TechNation report on the UK's leading technology clusters.

Digital businesses in and around Ipswich are worth nearly £200million to the local economy and employ nearly 10,000 people, according to a new study.

Project manager needed for construction industry

Searching for a new job? See details of Suffolk’s top paid vacancies here.

Beardmore Park.
lings

The relocation of a Martlesham garden centre, which had been facing closure, could pave the way for Marks and Spencer to expand its neighbouring store significantly.

Greene King has reported increased sales across its businesses for the first 40 weeks of its current year.

Pubs and brewing group Greene King today reported continued growth across its businesses, helped by “record trading” on Christmas Day.

The Port of Felixstowe is to offer a container-weighing service to exporters.

The Port of Felixstowe is to launch a container weighing service to help UK shippers comply with new international regulations due to come into effect on July 1.

Most read

Fred Olsen Travel Sale

cover

Click here to view
the Fred Olsen
Travel Sale

View

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Great British Life

Great British Life
MyDate24 MyPhotos24