UK not at the end of the insolvency tunnel: PwC
Companies are in the best shape for 12 months, but PwC expert warns business are still at risk as the UK tries to escape recession
As the Insolvency Service prepares to release its latest set of quarterly
statistics PwC has warned companies should not be complacent, despite a slowdown
in the number of collapses.
The Q4 numbers for 2009 are published tomorrow by the government department.
PwC reported the total number of insolvencies in 2009 was 19,431, the highest
for at least 10 years.
Mike Jervis, business recovery partner at PwC said:
“Historically, we have also witnessed a spike in the number of companies
entering insolvency on the way out of the recession showing that now is not the
time for companies to breathe easy – we are not at the end of the tunnel yet.”
PwC’s own analysis of insolvencies shows company insolvency trends are “the
best for 12 months” which reflected corporates being more adept at managing
through the downturn.
PwC expects the national figures to show the same trend tomorrow.
“Although this is clearly good news, we mustn’t forget that, although
beginning to decrease, these numbers are still extremely high,” Jervis added.
Further reading:
Insolvencies
to rise even after growth returns