The
latest business insolvency index produced by Experian has highlighted some
surprising results in terms of the amount of company insolvencies recorded in
the UK last year.
2012
saw a slight fall in the number of companies who were forced into insolvency
compared to the previous year.
In
regional terms, North West England, the West Midlands and Wales saw the biggest
improvement in terms of the insolvency rate.
A numbers game
There
wasn’t good news for everyone though. Perhaps the most interesting aspect of
the report was the fact that there was a clear disparity between the insolvency
cases recorded on behalf of larger companies compared to smaller operations.
Firms
with between 51-100 employees enjoyed an improvement in the number of recorded
insolvencies, with the figure falling from 2.22% in 2011 to 1.83% in 2012.
In
contrast, the situation was quite different for companies with more than 500
employees. These companies actually saw an increase in the rate of
insolvencies, with the figure rising from 1.46% in 2011 to 1.61% in 2012.
These
figures certainly suggest that it is the larger companies who are continuing to
feel the sharpest effects of the stuttering UK economy. It is our view, however
that smaller companies are also suffering real difficulties as trading
conditions continue to be difficult. Many business owners are simply 'closing
the doors' some what distoring statistics.
HMV
stand out as an obvious recent example of a major company that has considerably
more than 500 employees and has been forced to accept the reality of the
current financial climate.
Specialist advice
Businesses
may have felt that the worst of the downturn was now behind them. However,
these results suggest that a number of companies could simply be caught in the
eye of a wider-reaching financial storm.
Underperforming
businesses worried about their financial situation can benefit from seeking
advice sooner rather than later.
A
restructuring and insolvency specialist can assist business leaders, financial
directors and stakeholders to deliver pro-active solutions for their business,
as well as advice on how to adapt to the ever-changing economic landscape.
If you would like to have a free no obligation chat with
one of our advisers please call us on 0207 186 1143 or visit our website.
Moorfields Corporate Recovery - leading provider of Corporate Restructuring
& Insolvency Services - Insolvency Practitioners providing advice on
Company Administration, Business Recovery, Pre-Pack Administration, Company
Voluntary Arrangement, Liquidation, Receiverships.
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