The rise in Q4 2012 of corporate administration figures come as no surprise to UK plc say Duff & Phelps
Figures issued today by The Insolvency Service for Q4 2012 – perhaps not surprisingly – reflect a more than 5% rise in the number of corporate administrations from 548 in Q3 2012 to 580 for Q4.
Retail has continued to be hit hard with 2013 already witnessing the demise of HMV, Jessops and Blockbuster.
Figures recently released by Office for National Statistics revealed that the UK saw its slowest growth in retail sales for the month of December since 1998, with the exception of December 2010, when sales fell sharply due to bad winter weather.
Commenting on today’s Q4 administration figures, Philip Duffy, partner at leading global financial advisory and investment banking firm, Duff & Phelps, stated: “This rise of the UK’s corporate administration figures is a worrying reflection of the current state of UK plc. Particularly in retail, which despite December being one of the busiest times of the year for the sector, recorded a drop of 0.1% in the quantity bought from the previous month, according to the figures released from the Office of National Statistics.
“The British Retail Consortium reported a drop in footfall for December of 1.2% compared to the same period last year, suggesting that consumers are further tightening their discretionary spending habits.
“The difficult start that the high street has seen since the beginning of 2013 together with the prolonged spell of snow and winter weather is unlikely to do anything to improve the situation into Q1 of this year.”
About Duff & Phelps
As a leading global financial advisory and investment banking firm, Duff & Phelps balances analytical skills, deep market insight and independence to help clients make sound decisions. The firm provides expertise in the areas of valuation, transactions, financial restructuring, alternative assets, disputes and taxation, with more than 1,000 employees serving clients from offices in North America, Europe and Asia. Investment banking services in the United States are provided by Duff & Phelps Securities, LLC; Pagemill Partners; and GCP Securities, LLC. Member FINRA/SIPC. M&A advisory services in the United Kingdom and Germany are provided by Duff & Phelps Securities Ltd. Duff & Phelps Securities Ltd. is authorized and regulated by the Financial Services Authority. For more information, visit www.duffandphelps.com. (NYSE: DUF)
Read more at www.duffandphelps.com