Bankruptcy in the UK
"IN THE 12 MONTHS ENDING IN Q3 2018, 1 IN 221 COMPANIES ENTERED LIQUIDATION"
The Insovency Service
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Most Canadian companies looking to export would find comfort in deals from "blue chip" countries, like our sovereign brothers in the UK. A first world, english speaking country sounds like the perfect trading partner. Recent statistics out of the UK show that Company insolvencies are up almost 20% y/y.
Leading the way in the insolvency statistics is the Construction industry followed closely by the wholesale & retail trade.
Duncan Swift, vice president of insolvency and restructuring trade body R3, said: “This is the first time we’ve seen more than 4,000 corporate insolvencies in one quarter since the start of 2014. So far, 2018 has been a tough year for English and Welsh businesses, with insolvency numbers much higher in every quarter than in the same period last year."
The UK is Canada's 3rd largest trading partner to the US and China.
Canadian exports to United Kingdom amounted to $13.6 billion or 3.2% of its overall exports.*
Peter Dean, chairman at finance broker Your Expert Group said: “The six-year high in creditors’ voluntary liquidations could send a bleak message to markets. Not only are banks getting more assertive, but in the current economic climate, many companies are deciding to simply shut up shop rather than see it out.
“Many sectors, not least retail, are evolving at such a pace that legacy companies are simply being left behind and are calling it a day.”
For assistance with an effective Receivables Strategy, or if you have existing domestic or global debtors, please contact us. One of our Receivables Specialists will help you grow your business safely and accelerate bottom line growth. Additionally, we'll show the #1 secret to bypass the hurdle that prevents 95% of companies from growing to their full potential!
For more information on UK Trade statistics, please visit: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/752115/Company_Insolvency_Infographic_Q3_2018.pdf
*Data source: Trade Map, International Trade Centre, www.intracen.org/marketanalysis
Quotes by James Booth CityA.M.