UK not at the end of the insolvency tunnel: PwC

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