South: Insolvencies continue to soar
The number of troubled companies falling into insolvency continues to soar, with 1,311 being placed into administration in England and Wales in the first quarter of 2009, according to statistics released today by the Government's Insolvency Service.
This figure reflects a rise of 2% on the previous quarter (1,290 in Q4 2008 adjusted from 2,018) and a rise of 53% against the same period in the previous year 859 in Q1 2008.
Company liquidations in England and Wales also jumped to 4,941 in Q1 2009.
This figure reflects a rise of 7% on the previous quarter (4,615 in Q4 2008) and a rise of 56% against the same period in the previous year (3,168 in Q1 2008).
"Unfortunately, the trickle of liquidity beginning to seep back into the financial markets is too late for these businesses," said Trevor O'Sullivan, director at Grant Thornton's Recovery and Reorganisation practice in Southampton. "As company insolvencies typically lag behind overall economic performance, it is safe to say that we haven't seen the worst.
"Many companies facing liquidity problems have waited too long to seek professional advice. Businesses prepared to tackle the downturn head-on have a range of options open to help them, to manage their cash and gain the support of their lenders, customers and suppliers."
Important Note: The Q4 2008 number of administrators is adjusted above to 1,290 to reflect a single exceptional appointment over 729 managed service companies registered in October 2008, which would otherwise overstate the Q4 2008 figures.
