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Insolvency figures easing in UK businesses

Published on 20 Apr 2010 under category: legal

Business insolvency figures across the UK are dropping, according to a new report from PricewaterhouseCoopers (PwC).

The organisation found that there has been a four per cent fall in the number of corporate insolvencies, with only 4,251 companies becoming insolvent in the first three months of the year.

Overall, there is still a five per cent increase in insolvencies across the year, but year-on-year figures show a 20 per cent decline.

PwC also reported that most of the badly affected sectors had shown a marked improvement in this quarter, with retail insolvencies dropping by a third in 2010.

However, the report also concluded that despite the positive outlook, many businesses that have survived the recession fall-out were still adjusting to straitened circumstances.

Mike Jervis, a partner at PwC, said that many firms were restructuring or using "light insolvency" techniques to manage their businesses.

Cash-flow remains a huge problem, with recent figures revealing that 71 per cent of UK firms have experienced late payment, collectively adding up to £62.87 billion.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.