INSOLVENCY specialist Begbies Traynor said a variety of Government measures and lenient creditors have resulted in a decrease in failing companies – but predicts a period of growth as the recession continues to unwind.
In a trading update delivered at its annual general meeting the firm, which has an office in Liverpool’s Old Hall Street, said insolvencies nationally fell 18% in the second quarter to 5,405 compared with 2009, and dropped 2% compared with the previous quarter – the sixth consecutive quarterly decline. Insolvencies represent 80% of Begbies’ group revenues.
But executive chairman Ric Traynor said, despite declining failure rates, the firm has benefited from its non-insolvency arm which is involved in restructuring businesses.
He added: “Over the short to medium term, we anticipate a period of growth as the number of corporate insolvencies rises 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.”
He told shareholders at yesterday’s meeting in Manchester’s Deansgate that the outlook for the group remains unchanged, and was in line with market expectations.
