Insolvency activity up slightly for South East businesses, finds R3
Insolvency activity has increased marginally in the South East having fallen for the past three months, according to new findings from R3.
The trade body identified 225 insolvency-related activities in December, compared with 202 in November – including both administrator and liquidator appointments and creditors’ meetings.
This positions the Southern and Thames Valley region as the sixth highest for insolvency activity, behind Greater London (at 539), the North West, East Anglia, Yorkshire & Humberside, and the West Midlands.
It also bucks the national trend, with insolvencies across the country down 7 per cent on the previous month.
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R3 has also warned that current economic pressures remain a big challenge for businesses, based on data from Creditsafe.
Neil Stewart, Chairman of R3’s Southern and Thames Valley region, said: “The regional picture remains uneven with December’s rise in insolvency-related activities suggesting that some beleaguered business owners may have ceased trading as the year drew to a close.
“Although some supermarkets experienced exceptional results in the run up to Christmas, with discounters Aldi and Lidl enjoying spectacular sales levels, the same cannot be said for all sectors.
“We anticipate further insolvency activity in January for businesses whose poor festive trading may have been the last straw.
“We continue to see a reduction in energy costs and an ongoing fall in inflation – down to 3.9 per cent in the latest figures – which is positive news, albeit that inflation is still substantially above the government’s 2 per cent target and global energy prices remain volatile.
“The near future is looking rosier for this region than some other parts of the country but rising costs, cautious spending, creditor pressure and wage demands still seem likely to hold back growth overall.
“Businesses across the South and Thames Valley would be wise to remain alert and engage expert help, guidance and support at the first sign of business distress.”
R3’s Southern and Thames Valley region covers Buckinghamshire, Oxfordshire, Berkshire, Hampshire, Dorset and Wiltshire.
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