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Gloucestershire Business News

Latest insolvency figures show no significant casualties - yet

Latest insolvency figures published by the government show the slowing economy hasn't claimed any significant casualties yet.

The figures for Quarter 2 of 2017 show that 4,547 companies went into liquidation between April and June. Although slightly up on the previous quarter, the figure included 1,131 connected personal services companies, which all went into liquidation on the same day. Taking these out of the equation means insolvencies were at their lowest level since 2000.

So does this mean that all the post-Brexit doom and gloom hasn't come true? Are companies really safe?

Brian Johnson, insolvency partner at chartered accountants HW Fisher & Company, said: "The slowing economy has yet to claim significant numbers of business casualties. Brexiteers will find much to cheer in these numbers, as underlying company insolvencies have eased to their lowest level since records began.

"While the underlying figures are robust - with both voluntary and compulsory liquidations down on the previous quarter - the perennial problem with these official statistics is that they show only the number of companies falling off the cliff, not those teetering on the edge of the abyss.

"With inflation eating into margins and consumer confidence on the wane, the number of companies feeling the pinch is rising. For many, the one remaining 'get out of jail' card is Britain's continuing low interest rate. But recent hints from the Bank of England suggest that the days of rock bottom interest rates could be numbered."

So while it looks like very good news for business, here at Punchline we are treating the latest insolvency figures with no more than cautious optimism. With continued uncertainty around both interest rates and Brexit, we fear there may be more casualties to come in the future.

Do you think insolvencies will rise over the next quarter? Have you experienced customers going bust and owing you money? Email

mark@moosemarketingandpr.co.uk

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