Company administrations hit four year low
Corporate insolvencies are rapidly declining however businesses are not out of the woods yet
Administrations have hit a four year low, according to Deloitte’s research.
The current six month period has the lowest amount of corporate insolvencies
than any six month period over the last four years.
Administrations are down 46% in the first quarter of this year compared with
a year ago, and fell 22% on the same period in 2008, Deloitte highlighted.
Lee Manning, reorganisation services partner at Deloitte, said: “The
magnitude of the decline in administrations is surprising.”
“Traditionally, the first quarter of the year sees an increase in the number
of companies falling into administration following the festive season. However,
this year we have not seen this and the trend suggests that we may well have
turned a corner.”
Manning added companies were not “out of the woods yet”. Following the
election there could be tax cuts and new legislation that could contribute
towards some companies entering administration.
Further reading:
PwC:
UK corporate insolvencies levelling out
Pompey
administrator appoints CEO
Deloitte
administrators in at Jarvis