Insolvency-Related Activity Falls Again In South East

Insolvency-related activity fell for the third consecutive month in Kent and the South East last month, says R3, the UK’s restructuring, turnaround and insolvency trade body.

R3’s analysis of data provided by Creditsafe indicated a drop in insolvency-related activities from 223 in May to 163 in June.

The figures include administrator and liquidator appointments together with creditors’ meetings.

The South East figure for insolvency-related activities is now the sixth highest in the UK, behind Greater London with 458, the North West 414, East Anglia 314, the West Midlands 292 and Yorkshire & Humberside 219.

The fall in the South East is part of a cautiously optimistic picture nationally, with decreases in eight regions and increases just in the East Midlands, the North West, the South West and Yorkshire & Humberside

“Against that, April’s rise in employer National Insurance contributions continues to weigh heavily, and the fall in retail sales volumes by 2.7% in May reflects continued consumer caution.

“Add to that ongoing global uncertainties and, on a national level, the financial burden the country may have to bear in light of the U-turn on welfare cuts which will leave a black hole in the Chancellor’s coffers and could prompt tax rises.”

He added: “Businesses still face an uncertain future with a multitude of pressures cascading down from higher levels. It all comes down to confidence – consumers must feel secure enough to spend and businesses must ensure that their product or service is desirable, priced right and can see them through to future investment.”

With interest rates holding at 4.25% and a potential reduction on August 7, the financial markets appear relatively stable. And the economy is growing - only by 0.7%, but it is growing

R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.

Neil, a Regional Associate Director at insolvency litigation financing company Manolete Partners Plc, urged business owners across the South and Thames Valley to remain vigilant.

“Our message to directors is simple: be alert to signs your business could be financially distressed and seek expert guidance and support as soon as they show themselves.

“If you’re having problems paying wages, staff or suppliers, if stock is starting to pile up, or if you’re worried about your business and its finances, that’s the time to speak to a qualified advisor.”

“Most R3 members offer an initial consultation free of charge, giving business owners a chance to understand their options before matters become critical.”

The latest Creditsafe data shows that the number of start-ups in the South East rose from 5,716 in May to 5,894 in June. The number of companies with invoices that had gone past their payment date rose slightly from 59,587 in May to 61,782 in June.

There was a small upturn in the number of number of invoices which had gone past their due date in the region - from 539,371 in May to 544,735 in June.

Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.

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