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Administrations fall in Q2 30 July 2013

The number of administrations in England and Wales fell by 6% during the second quarter of 2013, according to figures from restructuring firm FRP Advisory.

The total number of administration appointments in June 2013 was 135, a 33% decrease on May’s total and down 29% from the average monthly rate of 189 for the first two months of the second quarter.

Andrew Sheridan, partner at FRP Advisory, said: “We anticipate that 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, and the continuing survival of those businesses which have managed to trade through the past five years, which now may thrive after the demise of competitors in their same space.

“While economic indicators haves shown a recent pickup 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.”

The figures show a 42% decline between March’s peak of 227 administration appointments and June’s low point of 135.

FRP Advisory’s findings are in line with figures from accountancy firm Begbies Traynor, which earlier this month reported the number of UK businesses in “financial distress” dropped 39% in the second quarter of 2013 in the highest year-on-year decrease since the start of 2011.

Despite an overall decrease in the number of appointments, June saw some high profile casualties, including retailer Modelzone and debt buyer Equidebt.

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