Insolvency drop is a false dawn, says PwC
Big four firm warns that tough times still lay ahead despite indications of companies weathering the hostile economic climate
Big four firm warns that tough times still lay ahead despite indications of companies weathering the hostile economic climate
An unexpected drop in the number of companies collapsing in the last three
months is not a sign that the economic gloom is lifting, PricewaterhouseCoopers
has said.
The firm conducted its own analysis into corporate insolvencies and found
that the number of corporate insolvencies in quarter two of 2008 actually fell
by 3.1% from the first quarter of the year, but were up by 22% on the same
quarter of last year.
According to PwC, 3,277 businesses across England and Wales entered into
insolvency in April, May and June of this year. This number is down on the
previous quarter, when taking into account seasonal trends but is still at a
five-year high, the firm said.
Mike Jervis, partner in the business recovery services practice, said:
‘Despite the small decrease in the figures this quarter, the numbers of
insolvencies continue to rise on an annual basis at around 10%, as we predicted
in January.
‘We do think the numbers will continue to rise at least at this rate
throughout the year. Firstly because there are an increasing number of companies
in work-out and, secondly, because many management teams have not been through a
downturn before. We recommend that they re-think their scenario planning, if
necessary on a worst case basis, to manage through the downturn.’
Further reading:
US
chapter 11: businesses must change
The numbers you crunch tell a story. Your expertis...
16yEmbracing 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 articleBody Shop, Ted Baker, Farfetch, MatchesFashion and Wilko among latest retailer insolvencies. Number of businesses in trouble are the highest in five y...
View articleInsolvency statistics in the UK for the second quarter of 2023 were the highest since 2009 with 83% of them relating to small businesses Read More...
View articleThere were 6,342 recorded company insolvencies in Q2, reflecting a 9% increase compared to the number of insolvencies in Q1, and a 13% increase compar...
View articleThe survey paints a “brightening” picture of the global economy, according to the ACCA Read More...
View articleThe pandemic may have “distorted” some economic data Read More...
View articleAdvisory firms must offer a “more supportive” and holistic approach to clients amid the economic downturn Read More...
View articleHaving a clear plan and clean data to help optimise the use of scarce resources will be key for businesses Read More...
View articleThe Coronavirus Job Retention Scheme has supported millions of jobs amid the pandemic, but with the support measure set to end in September, how can a...
View article