In the last quarter, Begbies Traynor noticed a significant increase in rescue and insolvency assignments in the building and construction industry, particularly in London and the South East. The company blames the trend on a ‘ripple effect’ from job cuts in the City and on increased costs of labour.
‘Smaller builders may soon see things going from bad to worse. We fear that because it’s an industry that relies heavily on casual labour, it’s particularly vulnerable to the extra cost that came with new employment rights for fixed term workers this month,’ argued Nick Hood, senior partner at Begbies Traynor London.
The rise in bankruptcies contradicts the British Chambers of Commerce latest quarterly survey of the building sector released last week. The BCC report showed a ‘middling’ performance of the construction industry with a modest improvement of confidence and employment, and a slightly worsened cash flow.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies