KPMG research finds rise in businesses falling into administration in 2017
PUBLISHED: 09:46 18 February 2018 | UPDATED: 09:46 18 February 2018
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The number of businesses going into administration rose in 2017, indicating a “subtle shift” towards more troubled times, according to KPMG.
The professional services giant analysed notices in the London Gazette which revealed 1,206 businesses called in administrators in 2017, up by 4.3% from 2016’s total of 1,156.
However the final three months of the year saw fewer administrations (279) than the same quarter a year earlier (293), and the fewest of any quarter of 2017.
Blair Nimmo, global head of restructuring at KPMG, said the rise could continue this year.
“There’s no doubt we’re seeing a subtle shift towards more difficult times for businesses across the board. The weak exchange rate, rising inflation and the negative effects of uncertainty on consumer and corporate confidence could certainly combine to prompt the number of insolvencies to climb more sharply in 2018.”