The number of companies entering into administration in the Midlands increased by almost 40 per cent during the third quarter of the year, according to analysis from KPMG.
Researching notices in the London Gazette KPMG found that the number of companies entering administration in the Midlands went from 36 in Q2 of 2019 to 50 in Q3. Although this is not a large number upon which to draw conclusions, it is also up on the same period last year when figures were just 39.
The region makes up 12 per cent of administrations nationally, but only 2 per cent of those had turnover above £5 million - potentially indicating the strength of the Midlands’ larger businesses.
Locally, the industries most affected were infrastructure and industrial manufacturing, which accounted for 14 and 16 of the appointments respectively.
KPMG said infrastructure remained an industry with a high level of insolvencies, averaging 14 per quarter since the start of 2017.
Chris Pole, restructuring partner at KPMG in the Midlands, said: “2019 has been a troubling year for manufacturing businesses in the Midlands, with many facing a lack of investment due to continued political uncertainty.''
"This has been exacerbated further by a slowdown in volume in the automotive space, which is a key sector for many manufacturing supply chains locally. The metal subsector has been particularly hard hit by a significant fall in the steel price throughout the first three quarters of 2019, caused by the availability of cheap steel from overseas. The sector has also been affected by delays to large construction and infrastructure projects.''
Categories: Insolvency process