Facebook - Birmingham Business Twitter - Birmingham Business Instagram - Birmingham Business
https://www.anthonycollins.com/who-we-help/individuals/wills-estate-planning/ https://www.lokiwine.co.uk

Corporate insolvencies look set for sharp rise

The Midlands branch of insolvency and restructuring trade body R3 is urging company directors to plan ahead for the withdrawal of Government Covid support schemes, following a record low in quarterly insolvencies.

Latest Government statistics for England and Wales show that there were 2,384 corporate insolvencies in the first quarter of 2021, a reduction of 21.9% compared to the previous quarter’s total of 3,053, and a fall of 38.3% compared to the first quarter of 2020 (3,863).

R3 Midlands chair Eddie Williams, a partner at PwC in Birmingham, said: “The fall in corporate insolvencies to the lowest quarterly total on record has been driven by an overall drop in all corporate insolvency processes. Additional Government statistics published in April, however, show an increase in corporate insolvencies between February and March of this year.

“It’s clear that Government support measures are still helping to keep businesses afloat, but they have pushed back, rather than prevented, the financial pain of the pandemic from translating into a sustained increase in corporate insolvencies.

“The total number of corporate insolvencies between April 2020 and March 2021 fell by more than a third compared with the same period a year earlier, while GDP fell nearly eight per cent. A drop in corporate insolvencies of this scale during the current economic climate would suggest that corporate insolvencies are about to rise.”

With Covid restrictions starting to lift, R3 Midlands is urging company directors and owners to consider their future strategy, viability and how they will manage when Government support measures end, with steps put in place before the majority of measures end in June, and the furlough scheme is wound up in September.

Eddie Williams continued: “Owners and directors need to keep a careful eye on their cashflow levels to ensure that they don’t fall into the trap of over-trading.

“They should have a plan for reopening which is sustainable, so that they don’t undo their efforts to survive the last year by potentially mismanaging the next couple of months.  

“R3 stresses that anyone who is concerned about their business’s finances should seek advice from a qualified source as soon as possible. Doing so will provide more options to turn around their financial situation, and more time to make a considered decision about the best solution for the future.”

Pictured: Eddie Williams

https://www.artorius.com

Trade body calls for greater clarity

Insolvency and restructuring organisation predicts more insolvencies

26th February 2021

Businesses believe they will need a new approach

Research warns of shift from restructuring to insolvency

7th September 2020

Chamber calls for clarity on life after lockdown

Firms need information to help with future plans

29th April 2020

SMEs receive helping hand to bounce back

WMCA and partners host free webinar on advice and grants

28th June 2021

Investments strengthen restructuring team

Professional services firm makes key appointment

28th January 2021

Funding brings support for SMEs

Unity Trust Bank initiative will help businesses struggling during pandemic

15th May 2020

Boosting business in the region

Midlands Engine Investment Fund (MEIF) improves access to finance

23rd June 2020

Grants kick off new wave of support

SMEs can access funding to adapt after pandemic

9th October 2020

Barclays names new head of corporate banking

Expert will lead the Midlands team

4th August 2020

Flexible financing

Backing SMEs during the most challenging times

26th June 2020

Andy McGill

Restructuring partner at Smith and Williamson

31st July 2020

Reasons for hope

Corporate financier Paul Heaven looks into his crystal ball

25th May 2020

GBSLEP strengthens board

New directors are appointed

29th September 2020

US seeks gold standard trade deal

Chamber global conference hears from American ambassador

25th June 2020

Trade and investment deal welcomed

Asian Business Chamber president praises "fantastic opportunity"

6th May 2021