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Friday, 26 February 2010

Company Insolvencies hit lowest rate for 30 months In January

Insolvencies hit lowest rate for 30 months

The rate of business failures fell to its lowest level in January this year since June 2007, figures from credit reference agency Experian have revealed.

Its monthly Insolvency Index found that the number of businesses going under in January 2010 dropped to seven in every 10,000 firms – or 0.07 per cent. This compares with 0.09 per cent in January 2009 and 0.06 per cent in June 2007.

The research found that firms with just one or two employees had the lowest rate of insolvencies, with just four out of every 10,000 firms failing in the first month of this year. Experian attributed this to the lower overheads associated with employing fewer staff.

“It’s encouraging to discover that not since the current financial crunch started have so few firms become insolvent in a single month,” said managing director of Experian firm pH, Rolf Hickmann. “While it’s too early to predict whether we are fully out of the woods, this does hint at an improvement in the health of UK businesses.”

We believe that this is largely a false picture. With hundreds of thousands of companies not paying PAYE and VAT on time and building up arrears it would be astonishing if insolvencies had risen !

1 comment :

  1. You are no doubt right Keith, there are a huge number of very fragile businesses out there. Yes the deferring of tax payments through the HMRC BPSS service is helping to prop them up, and if this works in the long term will very much depend on how they manage out of it. The recent TMA press release highlighted this point well http://bit.ly/9mcjLE

    The other point that makes these statistics highly questionable is that it is for just one month! Surely what we need is trends to able to make any meaningful analysis?

    ReplyDelete

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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