Overcast

Overcast

max temp: 10°C

min temp: 8°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

The scene of a thatch fire in Stoke-by-Nayland

A picturesque country cottage is still standing today despite a fire ripping through its thatched roof.

An Abellio Greater Anglia train

Rail services between London Liverpool Street and Norwich have been cancelled after a train fault at Diss.

Ipswich Town v Arsenal  FA Cup Final at Wembley 1978 - 

Kevin Beattie and Allan Hunter

It is an impassioned debate which never fails to invigorate the East Anglian derby.

Colchester Half-Marathon. Starting and finishing at Weston Homes Community Stadium.

Competitors braved the dismal morning weather today to take part in the Colchester Half Marathon.

The scene after the thatched roof fire in Stoke by Nayland - Picture credit - Suffolk Fire and Rescue Service

Ten fire crews tackled a thatched roof blaze in a Suffolk village overnight.

Sir John French: a colourful character and respected soldier

We’ve heard about the Suffolk men who fought at the battle of Neuve Chapelle.

Ipswich Crown Court

A 19-year old man who met up with a 13-year-old girl and exchanged text messages with her despite being given a police caution for kissing her several months earlier has been sentenced to 21 months youth detention.

St Edmundsbury Cathedral overlooking colourful displays in the Abbey Gardens

Suffolk’s most important religious building has been awarded a £300,000 Government grant to pay for urgent roof repairs.

Josephine Murphy

An 86-year-old woman who had gone missing from Clacton has been found safe and well

Aftermath of a barn fire in Holton.

A television antiques expert has appealed for help rebuilding his eco-friendly arts centre in Suffolk after a major blaze destroyed the historic sawmill that was to be its showroom and workshops.

Most read

Topic pages