Another great piece of news to increase our confidence in the job market and the economy as a whole – company liquidations are on the fall.
It’s a slightly depressing situation when you are analysing the ‘deaths’ of companies in order to understand the ‘improvement’ of the economy but it’s a realistic indicator as to UK performance.
At MRK Associates, focusing on the Northern Home Counties (the region of Aylesbury, Luton, Watford and Hemel Hempstead), we would back the findings in this report. We have continued to see progress in the local finance job market with more SMEs starting to recruit for finance positions – ranging from invoicing clerks and part qualified accounts assistants to company accountants/ financial controllers and finance directors. The corporates are still going well but almost every single one of them wants TOP 4 ACAs – there’s only so many of them so get some ambitious, forward thinking ACCAs or CIMAs as well to balance your business!
Anyway (I digress), this report by UHY Hacker Young states that the number of liquidations fell by c.4000 from 24,700 in fiscal year 2009-10 to 20,700 in the 2010-11. That’s quite a drop so long may that continue.
The report also states that the peak liquidation figure during the recession was in 2009-10 and this wasn’t as high as it was in the last recession (24,700 compared to 27,000 in 1991). So not only have we come out of this recession quickly, the overall severity for companies as we leave it behind us isn’t as high either – fantastic news!
This must give the SME marketplace a huge lift as things are still tight on both margins and cashflow but at least there seems to be some light at the end of the tunnel. It’s generally not the Corporates who have to fight off insolvency – it’s the SMEs who are at the bottom of the food chain. These are also the businesses that we need to kick-start the economy so a slow market here means a slow market all the way up. Good news for them should be good news for all of us.
Now if we could just get the banks to actually start lending to them………….but that’s a whole different topic!
See the full article here: https://bit.ly/jyeJyw