News Article


Company administrations fall in Q2

By CreditMan Wednesday, July 31, 2013

The number of companies entering administration in the second quarter of 2013 fell by 6 per cent, according to new research.

A total of 135 administration appointments were made in England and Wales during June according to the latest FRP Advisory company administration index.

This is a fall of 33 per cent from May and a decline on March's peak of 227 administrations.

Gerald Smith, partner at FRP Advisory in Birmingham, said: "FRP Advisory anticipates the decline in administration appointments is likely to continue through the summer months.

"The decrease results from a combination of extended low interest rates, a more flexible approach to rental payments by landlords (in the face of reduced demand for space and the spectre of punitive empty rates) and the continuing survival of those businesses which have managed to trade through the past five years, and which now may thrive after the demise of competitors in their same space.

"While economic indicators have shown a recent pick-up in activity particularly in the services and manufacturing sectors, it is still too early to predict that a full-scale recovery is underway, rather perhaps a levelling out in the economy."