Insolvencies creep up over Q3 2017 | KPMG | UK

Insolvencies creep up over Q3 2017

Insolvencies creep up over Q3 2017

The number of companies falling into administration across England and Wales ticked up over the third quarter of 2017.

1000

Also on KPMG.com

Analysis by KPMG of notices in the London Gazette shows that the number of companies entering administration increased from 297 in the third quarter of the year to 302 in the third quarter. This is also an increased when compared to the same period last year (Q3 2016) which saw 295 corporate insolvencies.

Blair Nimmo, head of restructuring at KPMG, commented: “Since the middle of 2016, we’ve seen a fairly steady rate of companies falling into insolvency, with quarterly figures typically hovering around the 300 mark. While this is very much reflective of the benign economic climate we’ve seen in the UK over the last 18 months, here at KPMG we have started to see an increase in the number of conversations we’re having with businesses around performance improvement and turnaround strategies.”

Blair Nimmo continued: “Following a challenging time for retailers over the first six months of the year, it appears the sector steadied over the summer, although all eyes will now be turning to their performance over their busiest and most important final quarter of the year. Sectors that do appear to have undergone a degree of stress over the quarter include building and construction, manufacturing and interestingly, companies who offer recruitment and temporary manpower services – perhaps emblematic of the low unemployment rate currently seen across the UK economy.

“Looking ahead, uncertainty in a broader sense may leave a negative impression on consumer and corporate confidence. The weak exchange rate may take its toll on certain sectors, interest rates have finally seen their first rise in over a decade and inflation is at its highest level in five years. It will therefore be interesting to see whether the next couple of quarters start to witness a more stark increase in corporate failures.”


ENDS

 

For press enquiries only, please contact:
Katy Broomhead, Senior PR Manager, KPMG
T: 0161 246 4623
M: 07824 537963
Email: katy.broomhead@kpmg.co.uk


About KPMG
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
 

Connect with us

 

Request for proposal

 

Submit