CORPORATE INSOLVENCIES in the UK are rapidly declining, according to statistics from PwC.
There were just 15,894 formal insolvency procedures across the UK in 2010 compared with 19,512 in 2009. Only 3,605 companies became insolvent in the fourth quarter of 2010, representing a 6% drop compared to the third quarter of 2010, and 19% fall on the same period in 2009.
Mike Jervis, partner in business recovery at PwC, said: “UK businesses are certainly not out of the woods yet, as we expect looming public sector cuts to hit the bottom line of many public sector suppliers.”
“A modest increase in interest rates would also put additional pressure on many struggling companies,” he added.
The research also shows London continues to have the highest number of corporate insolvencies by region.
The worst hit industries include construction, which saw 565 companies enter a formal insolvency arrangement in 2010, manufacturing (410), retail (399), hospitality and leisure (237) and real estate (131).
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
Smith & Williamson has been appointed administrators of charity 4Children