Partner Article

Deloitte report signals brighter times ahead

TOTAL administrations for the first nine months of the year are down 36% compared with the same period in 2009, according to analysis by Deloitte.

So far 2010 has seen a total of 1,648 administrations, compared with 2,589 in the same period in 2009.

Meanwhile, administrations are down 20% from 2,061 administrations in the same nine month period in 2006 – the last full year before the financial downturn began.

The research shows that quarter on quarter administrations are falling to a pre-credit crunch low. Q3 of this year saw 476 administrations, down 36% from 733 in the same period in 2009, and down 8% on Q2 2010 (558).

Neil Matthews, reorganisation services director at Deloitte in Newcastle, said: “Whilst the economy holds its breath for the outcome of the Comprehensive Spending Review, these figures offer a glimmer of hope. For the first time since the financial crisis began, we’re beginning to see a consistent drop in the numbers of companies hitting the wall. This can only be a good thing.”

The decline in administration figures is being seen across the industry sectors. The most pronounced drop was seen in the retail sector, with administrations down 50% on the same nine month period in 2009, and down 13% on the previous quarter.

This was posted in Bdaily's Members' News section by Ruth Mitchell .