Fri, 16 Dec 2011 | BUSINESS NEWS
Begbies Traynor is expecting increased numbers of firms to collapse next year.
Ric Traynor, executive chairman of the insolvency company, believes that low interest rates have prevented many business insolvencies from occurring this year that might have done otherwise.
“Low interest rates means there is less pressure on businesses and many have been able to limp on. But at some point they will face the inevitable,” he told The Telegraph as Begbies Traynor’s half-year results were reported.
Small and medium-sized businesses in the property, construction and retail industries in particular, may be most susceptible to failing next year. While professional and financial service providers are also under pressure, and suffering from cash flow difficulties as clients struggle to meet payments due.
The upcoming rent due day on 25 December, when rent will be paid three months in advance, will further tighten companies’ cash reserves.
The numbers of firms entering administration is predicted to remain at those seen in 2011, though it could rise by 15 per cent if the economy slips into another recession.
Begbies Traynor recorded a £400,000 fall in revenues to £29.4 million for the six months ending October. Its pre-tax profits jumped £300,000 to £3.4 million, however.
“We’re likely to be going into a double-dip recession next year,” Mr Traynor added.
Esteemed commercial window cleaning company, offering trusted and professional services to a diverse B2B client base, including commercial block management companies, nursing homes, facilities management companies, housing associations, retirement co...
The business is a drainage and plumbing specialist based in the South West. Started in 2020, after the family sold a successful award-winning drainage franchise on the South Coast. The family relocated to the West Country and built a business in the...
This Facility Management business has been trading since 2013. Commercial clients in South Wales and the South West. Has grown organically through client referrals.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.