ISLAND BUSINESSES COULD HAVE A TOUGH 2ND HALF OF THE YEAR WARNS INDUSTRY PROFESSIONALS

New R3 Chairman Garry Lee
New R3 Chairman Garry Lee

Quarterly corporate insolvencies have hit a 13-year high, according to the R3 trade body for restructuring and insolvency professionals on the Isle of Wight.

Figures for the 2nd quarter of 2022 (April-June) in England and Wales were almost double those for the 1st quarter of the year and their highest since Q3 2009.

R3’s analysis of the latest statistics from The Insolvency Service showed that:

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  • There were 5,629 seasonally adjusted corporate insolvencies in Q2 2022, an increase of 12.7% compared to Q1 2022’s figure of 4,995 and of 81.3% compared to Q2 2021 (3,105). It was the highest quarterly total since Q3 2009 (5,749).
  • There were 28,946 seasonally adjusted individual insolvencies in Q2 2022, a decrease of 10.1% compared to Q1 2022’s figures of 32,197. It was an increase of 6.5% compared to Q2 2021 (27,179).

Garry Lee, chair of R3’s Southern and Thames Valley region, including the Isle of Wight, said:

“The latest quarterly corporate insolvency figures lay bare the major impact inflation and the legacy of the COVID-19 pandemic is having on businesses.

“They show the highest levels of corporate insolvency on a quarterly basis in more than 10 years and a significant increase on the first three months of 2022.

“The steady rise in Compulsory Liquidations we’ve seen since the start of the year also suggests that creditors are now making use of their power to issue winding-up petitions to try and claw back monies they are owed.”

Garry, who is an associate director in the recovery and restructuring services department at professional services group Evelyn Partners’ Southampton office, added:

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“The current economic headwinds are only likely to get worse before they get better. Businesses on the Isle of Wight could have a tough 2nd half of the year.

“For company directors and owners concerned about their prospects in the months ahead, now is the time to make sure they have a clear plan in place for the future.

The quarterly fall in personal insolvencies was down to a reduction in bankruptcies, Debt Relief Orders (DROs) and Individual Voluntary Arrangements (IVAs). However, with inflation running at its highest level for many years and recent increases in interest rates, combined with low wage growth, individuals should continue to monitor their finances and seek help, sooner rather than later, where necessary.

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Island critic
Island critic
14 days ago

Never knew there was any island business thought they are all run by mainlanders and workers are on £1 a day

Peaky Blinder
Peaky Blinder
14 days ago

Interesting that they haven’t mentioned the self-inflicted wound we gave ourselves when we left Europe! Increased costs of importing and exporting goods, plus labour shortages are all our own making!
Anyone that says otherwise is delusional.

Island critic
Island critic
Reply to  Peaky Blinder
14 days ago

Finally an islander without a small mind

Smiffy
Smiffy
Reply to  Peaky Blinder
14 days ago

Trouble is, it’s too late now and those of us who knew that Brexit would be a disaster are suffering the same consequences as the cretins who voted for it.

Boris Johnson and his cronies lied to get it through with the explicit reason for it being the advancement of their political careers and increasing their wealth. They did this deliberately and knowingly at the expense of this country and her people.

That, in my book, is treasonous.

truthouts
truthouts
Reply to  Peaky Blinder
13 days ago

Typical left wing statement of “you must be delusional if you don’t agree”….

As you are sane and I am obviously not, could you explain why many Spanish tourist spots are unable to open as they can’t get staff. Last time I looked they Spain was still part of the EU.

Spain plans to relax work permit rules for foreigners, its social security and migration minister said on Friday, seeking to address labour shortages in key industries such as tourism and construction that threaten its economic recovery.

Cal Orific
Cal Orific
Reply to  truthouts
13 days ago

Typical Brexidiot whataboutery. Point at something somewhere else.

And nothing left wing about thinking Brexit was idiotic. Generally centrists wanted to remain. Brexit was driven by to the far right AND the far left.

truthouts
truthouts
Reply to  Cal Orific
13 days ago

Nope, just asking for a response as to why “labour shortages are all our own making!
anyone that says otherwise is delusional.” is considered to be accurate.

Labour shortages in the UK has nothing to do with Brexit and all European countries are facing the same difficulties.

Oh my eyes
Oh my eyes
13 days ago

A massive recession coming, the likes of which most have never known.

All the jobs easy to get will soon be in very short supply

A Winter of misery ahead for many businesses and, as they close the knock on effect of workers sacked will bring even more down.

Back to reality soon, watch, and learn.

Cut2chase
Cut2chase
Reply to  Oh my eyes
12 days ago

The country is too soft, hence no staff.

Now if you have a child, you get tax credits and working tax credits which means you ONLY have to work sixteen hours a week and your wages are made up to a decent amount AND you get most or all of both your rent and your council tax paid for, along with free prescriptions and dental treatment for the whole family.

So, WHY work more? Hence not enough full time workers left and most have kids and most do the minimum they can, and WHO can blame them.

System need changing to make full time work pay, NOT part time.

 

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