Interpath Advisory has reported a substantial decrease in the number of companies in Yorkshire and the North East of England filing for administration in the first quarter of the year, with a decrease of over a quarter (27.5%). Despite this positive trend, insolvency experts caution that challenges persist for businesses in the region, especially within the building & construction sector.
According to Interpath’s analysis of notices in The Gazette, there were 37 administrations in Yorkshire and the North East during Q1 2024, showing a decline compared to last year’s numbers (Q1 2023: 51). This contrasts with the national trend, as the overall number of cases across Great Britain saw a slight increase from 321 (Q1 2023) to 328 (Q1 2024). Yorkshire and the North East accounted for approximately 11.3% of administrations nationwide.
Notably, the building & construction industry was the most affected sector in the region, with 11 cases in the first three months of the year, followed by industrial manufacturing with six administrations.
Reflecting on these statistics, James Clark, Managing Director and Head of the Yorkshire team at Interpath Advisory, emphasized the ongoing challenges faced by businesses in the region. He highlighted the impact of reduced government support, inflation, slow growth, cautious consumer behavior, and high interest rates on company finances, leading to unsustainable pressures.
Clark pointed out that cash flow constraints were a significant factor contributing to distress among businesses, exacerbated by shrinking margins and difficulty in generating sufficient revenue. He stressed the importance of early intervention and seeking support to improve the chances of a positive outcome during challenging times.
Looking to the future, Clark predicted a potential increase in the annual administration rate, surpassing pre-COVID-19 levels by the end of the year. This shift would mark a crucial point in the UK economy’s readjustment.
In conclusion, businesses in Yorkshire and the North East are encouraged to proactively address financial difficulties and seek assistance to navigate through turbulent economic conditions effectively.
Interpath Advisory has reported a substantial decrease in the number of companies in Yorkshire and the North East of England filing for administration in the first quarter of the year, with a decrease of over a quarter (27.5%). Despite this positive trend, insolvency experts caution that challenges persist for businesses in the region, especially within the building & construction sector.
According to Interpath’s analysis of notices in The Gazette, there were 37 administrations in Yorkshire and the North East during Q1 2024, showing a decline compared to last year’s numbers (Q1 2023: 51). This contrasts with the national trend, as the overall number of cases across Great Britain saw a slight increase from 321 (Q1 2023) to 328 (Q1 2024). Yorkshire and the North East accounted for approximately 11.3% of administrations nationwide.
Notably, the building & construction industry was the most affected sector in the region, with 11 cases in the first three months of the year, followed by industrial manufacturing with six administrations.
Reflecting on these statistics, James Clark, Managing Director and Head of the Yorkshire team at Interpath Advisory, emphasized the ongoing challenges faced by businesses in the region. He highlighted the impact of reduced government support, inflation, slow growth, cautious consumer behavior, and high interest rates on company finances, leading to unsustainable pressures.
Clark pointed out that cash flow constraints were a significant factor contributing to distress among businesses, exacerbated by shrinking margins and difficulty in generating sufficient revenue. He stressed the importance of early intervention and seeking support to improve the chances of a positive outcome during challenging times.
Looking to the future, Clark predicted a potential increase in the annual administration rate, surpassing pre-COVID-19 levels by the end of the year. This shift would mark a crucial point in the UK economy’s readjustment.
In conclusion, businesses in Yorkshire and the North East are encouraged to proactively address financial difficulties and seek assistance to navigate through turbulent economic conditions effectively.