When the Insolvency Service release their statistics there is always a flurry of analysis coming out about which area has the highest insolvency rates and which industries appear to be the worst affected. It should be remembered that the actual insolvency rates are not a complete and accurate picture of the health of the economy as struggling businesses that are continuing to trade are not included in the statistics.
So the latest news is that the city of Bradford has the highest business insolvency rate of 0.6% of registered businesses in the city failing – up 45% since Quarter 1. Manchester follows closely behind with a rate of 0.57% - up 17 percent the first three months of the year.
IT looks as if there may be an improving picture for the construction industry across the UK, as there has been a small drop in the total number of actual administrations in the second quarter down from 87 to 86 when compared with the first quarter!
Construction companies seem to be particularly at risk as the smallest mistake on a project can lead to serious cost overruns! Before a mistake turns into a crisis it is important to take advice. The sooner you act the more likely the problem can be dealt with.
KSA Group is advising and assisting a number of SME construction companies with sales ranging from £800k to £20m. All are fundamentally viable but have had either cost overruns or bad debts.