We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

UK corporate insolvencies lowest since Q2 2008


Q4 2012 Insolvency figure down 10.7 percent y/y

Article comments

Corporate insolvencies in England and Wales fell by 10.7 percent over the fourth quarter of 2012 versus the corresponding quarter of 2011, according to figures released by the Insolvency Service on Friday.

The data suggests that 3,834 firms suffered either compulsory or voluntary liquidation. The headline figure is the lowest since the second quarter of 2008, the Insolvency Service said. It is also down 3.3 percent on the previous quarter.

Responding to the figures, Nick O'Reilly, insolvency partner at HW Fisher & Co., felt there were reasons to remain concerned.

"The lifeless hands of the UK's zombie companies slowly tightened their grip on the economy's throat throughout 2012. Their poisonous, growth-stifling effect is one of the key reasons the UK is lurching towards a third recession," he told CFOWorld.

"But while their impact is obvious, until now the zombies themselves have been hard to see. Yet the big drop in both compulsory liquidations and company voluntary arrangements (CVAs) in 2012 hint that there are a large number of zombie businesses which are past saving and beyond restructuring," O’Reilly added.

Tracy Ewen, MD of IGF Invoice Finance, felt that regardless of what the statistics say, they fail to reveal the entire insolvency picture.

"For instance, some businesses may wait until a creditor winds them up or the Government shuts them down as a result of not having filed accounts for several years. Such behaviour could be skewing the insolvency statistics," Ewen said.

Share:

Recommended Articles

Comments

UK corporate insolvencies lowest since Q2 2008
Financial Planning

Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..


Ryanair reports 157% profits leap and raises forecast

Total revenues rose 11% to €1.49 billion, the airline reported on Monday.more ..

Apple will 'set the world on fire' with iPhone 6 sales

Analysts anticipate an 'unbelievably massive' second half of '14 for a new, larger-screen iPhone, in part because Apple's committed a record $21B for components, tooling and manufacturingmore ..

Apple posts 5% rise in revenues to $37.4bn

CFO Luca Maestri said Apple had beaten the PC industry average in 32 of the last 33 quartersmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *