INSOLVENCY specialist Begbies Traynor says a variety of Government measures and lenient creditors have resulted in a decrease in failing companies – but predicts a period of growth as the credit crunch continues to unwind.

In a trading update coinciding with today’s annual general meeting the firm, which has an office in Liverpool’s Old Hall Street, said insolvency procedures nationally fell 18% in the second quarter of the year to £5,405 compared with the previous year, and dropped 2% compared with the previous quarter – the sixth consecutive quarterly decline.

Insolvencies represent 80% of Begbies Traynor’s group revenues.

But executive chairman Ric Traynor says despite decliningcompay failures the firm has benefited from its non-insolvency arm which is involved in restructuring businesses.

And he added: “Over the short to medium term we anticipate a period of growth as the number of corporate insolvencies rise in line with historical patterns following a recession and as SMEs (small to medium-sized enterprises) start to feel the full impact of the gradual unwinding of Government support measures and the public spending cuts.

“Given the particular characteristics of this economic cycle, with interest rates expected to be kept at relatively low levels for some time, we expect this growth to be more gradual and prolonged than following previous recessions.”

He said the outlook for the group remains unchanged and in line with market expectations.