Further changes to the economic landscape expected

“The figures are not unexpected given the scale of the economic downturn and it is no surprise that there have been so many liquidations. In the absence of traditional funding routes over the last 12 months, businesses have simply run out of cash with no legitimate hope of rescue.

“The lack of funding and the ‘wait and see’ attitude of many banks has contributed to the fall in administrations. Most commentators seem to believe that there is much more to come with a peak in insolvencies maybe not occurring until the second or third quarter of this year.

“Historically the onset of a recovery also can lead to a spike in insolvencies as businesses re-structure or re-finance, shedding non-performing parts of the business. There is also of course the question of a general election which could bring further changes to the economic landscape.”