140,000 companies "in severe financial distress"-Begbies Traynor
Insolvency specialist says Q4 2009 figures come "despite government support measures"
Insolvency specialist says Q4 2009 figures come "despite government support measures"
More than 140,000 companies “experienced significant and critical financial
problems” in the fourth quarter of 2009, according to statistics from Begbies
Traynor.
The figure for companies in “high levels of corporate distress” for Q4 2009
is 6 percent higher than the figure for Q3 2009, but 14 percent lower than Q4
2008, according to the firm’s Red Flag report.
These statistics come “despite the positive effects of government fiscal
stimulus” such as the VAT rate reduction, quantitative easing and the Business
Payment Support Service, Begbies said.
Ric Traynor, executive chairman of Begbies Traynor, said: “Government support
measures are providing welcome relief to the UK’s struggling companies in the
short term but they may exacerbate problems for some businesses as the need to
repay debt catches up with them later in the year.
“Experience of the last four recessions tells us that unemployment levels and
corporate and personal insolvencies have lagged behind technical recession by 1
to 2 years. With tax and interest rates certain to rise, as well as increasing
pressure on consumer spending, there is every reason to suggest that the
insolvency peaks of this recession remain some way off.
While business finance is expected to become more readily available during
the first half of 2010, we anticipate a rise in the levels of financial distress
during the second half of 2010, as temporary financial support measures are
unwound.”
Further reading:
The
good, the bad and the future
More about:
The numbers you crunch tell a story. Your expertis...
14yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from...
View articleBegbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restora...
View articleTop 50+50 firm Begbies Traynor recorded pre-tax profits of £4.5m for the year, boosted by its property services unit, despite seeing insolvencies drop...
View articleINSOLVENCY outfit Begbies Traynor has signed an agreement with the Chartered Institute of Credit Management (CICM) to become one of its new corporate ...
View articleBEGBIES Traynor’s Scottish insolvency team has won a major contract for the Northern Ireland government’s Department of Enterprise, Trade ...
View articlePre-tax profits at Begbies Traynor slump to£600,000 from £1.5m in the the six months ended 31 October 2015 Read More...
View articleMajority of the 22-strong staff have been made redundant, but a skeleton staff of seven remains to complete certain contracts Read More...
View articleBegbies Traynor acquires trade and assets of The P&A Partnership out of administration in a pre-pack deal worth of £860,000 Read More...
View article