Dramatic fall in company insolvencies predicted
There will be a sharp fall in the number of businesses going bust this year compared to 2002 following improved trading conditions, mid-tier firm BDO Stoy Hayward has predicted.
Figures by the top ten firm show 4,565 UK businesses failed between April and June 2003, down 6.6% on the same period last year.
In its Industry Watch survey, the firm predicts 5.4% fewer businesses will fail this year. It expects 18,885 companies to go bust in 2003 and 60,000 between now and 2005, 3,000 fewer than previously expected.
Business recovery partner Shay Bannon said: ‘The improvement in trading conditions following the Iraq war is finally being reflected in a reduction in the number of business failures in the UK.’