Administrations rise 20 per cent as Brexit pressures bite

Commenting on the latest England and Wales corporate insolvency statistics for the third quarter, Graham Bushby, head of restructuring at RSM said: 

'Administrations have been increasing slowly over the last few quarters, but these jumped by 20 per cent in Q3 versus the last quarter to reach their highest level for more than five years. This suggests that company distress levels are now accelerating. Clearly, continued uncertainty around Brexit is affecting consumer confidence and business sentiment. This is being compounded by a slowing in some of Europe's major economies such as Italy and Germany, as well as ongoing concerns around the impacts from a slowdown in China.

'The biggest rise in Administrations is in the construction sector. Houses are now taking much longer to sell as buyers remain cautious in the face of uncertainty. This leaves construction firms struggling to sell units to keep their head above water or finance additional phases of building. 

'Admin & Support services showed the second biggest increase. This could again reflect ongoing uncertainty, or be a sign that some businesses are getting ready for Brexit and moving overseas.

'To add to the uncertainty, we now have a General Election to add to the mix. This is likely to make life pretty tough for retailers who rely on the Golden Quarter in the lead-up to Christmas to boost revenues and profits.'