The number of company insolvencies increased by just under 1% compared to theprevious quarter, and fell by over 6% compared to the similar period last year.Individual insolvencies remained level with 7,655 going out of business – anincrease of just over 6%.
PricewaterhouseCoopers insolvency experts argue that the marginal increase in company liquidations will provide little room for comfort for many companies struggling to remain afloat with consumer spending reaching ‘unsustainable’ levels.
A recent Bank of England financial stability review argued that the leastprofitable companies today are in a worse financial situation than strugglingbusinesses in the recession.
Stephen Taylor, European insolvency leader at PwC, said: ‘There is sufficientevidence to suggest that we are currently under the ‘natural level’ of companyinsolvencies for a healthy and vibrant economy. Any future rise in companyfailures, caused by a fall in consumer spending and high levels of e-businessfailures, is not necessarily ominous for the economy.’
The UK experienced 125 insolvencies for every 10,000 registered companies.In many, PwC report predicted that a large number of e-businesses faced failurebecause of its high cash ‘burn rate’.
Taylor added: ‘The insolvency figures released today do not reflect thedifficulties facing this sector in recent months.’
A new head of solutions, Aidan Brennan, has been appointed at KPMG UK
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast