0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Company Administration Rates Up Almost 5% Last Year

Written by: Keith Tully

Published: 10th February 2020

Beales in administrationThe number of companies entering administration in England and Wales increased by almost 5 per cent over the course of last year.

According to the latest figures from KPMG, the building and construction sector saw particularly sharp increases in administration rates, while the real estate and property industries also saw a jump in insolvency activity.

The figures are based on official insolvency notices posted in the London Gazette, with a total of 1,403 companies believed to have entered administration last year, compared to 1,341 in 2018.

Problems affecting high street retailers, many of which have entered Company Voluntary Arrangements (CVAs) in an effort to restructure and remain viable, are understood to have had knock on effects on businesses whose fortunes rely in part on the value of and demand for commercial properties.

Uncertainty around the Brexit situation and the lack of growth within the UK economy last year are also said to have contributed to making life tough for large numbers of operators within the construction sector.

The third quarter of 2019 saw particularly high rates of administration, with 420 companies across England and Wales finding themselves in that situation between July and the end of September.

Not all instances of insolvency lead to an entry into administration, with some companies collapsing in such a way that means they need to be entered into liquidation immediately, as happened in the case of Thomas Cook last year.

“2019 was a year characterised by profound political and economic uncertainty, with consumer confidence remaining fragile and companies continuing to bear the brunt of rising overheads and increased costs,” said Blair Nimmo, head of restructuring at KPMG UK.

“While many battened down the financial hatches, adopting a prudent and cautious strategy, for some, the challenging trading conditions proved to be a bridge too far.”

Hopes are that there will be fewer cases of administration and insolvency in 2020 than 2019 because the question of whether the UK will leave the EU has at least now been decided.

Many businesses have responded positively to the certainty that December’s general election result brought them, although economic challenges clearly remain for companies across many different sectors.

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
78
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners