We’re into the second half of the year and so far the conditions for businesses have been relentlessly gloomy.
A snapshot of what it has been like is shown from the latest insolvency figures just released.
Company insolvencies have increased by 27% in June compared to June 2022. The rate of insolvencies is also up by 44% for the first half of the year.
Businesses have, as we have been reporting, faced rising costs for labour, materials, energy and credit.
There are challenges across all sectors but most noticeably in construction, manufacturing, leisure and hospitality.
The difficulties have been particularly acute for SMEs which generally have less liquidity than larger concerns.
However, it is possible that things might improve as according to Inga West, counsel at the law firm Ashurst, “we have now caught up with the Covid backlog – that is the so-called ‘zombie companies’ that were able to avoid insolvency during the pandemic partly or wholly due to the Covid government support measures, and which subsequently needed to liquidate when the support ran out.”
It remains imperative that businesses keep a tight rein on their cash flow and we have a free tool to help you.
You can download it here.
And if you need someone to talk to message us or call. We’re here to help.