While we’re seeing a real appetite for business growth along our clients, the national trend for business insolvency is up – with the UK facing the highest rate in Western Europe. This is putting pressure on supply chains – and customers that already have weak-performing businesses are proportionately more likely to go bust.

 

We’re seeing an increase in claims that reflects the rise in insolvencies of nearly 9% in the first half of this year. A number of factors have combined to exacerbate the UK’s problems, including the second extension of Article 50 that not only created trading uncertainty…

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Menswear giant Moss Bros Group plc was the subject of whispers recently when industry pundits suggested the company ‘announced’ that its credit insurance would be cut by insurers. 

Within hours the reports had been pulled from the websites listing the news (links to which appeared in Google’s results) which has created further speculation about how Moss Bros views credit insurance.

If Moss Bros themselves quashed the news, then it indicates the importance they place in credit insurance cover being “seen” to be in place, regardless of which suppliers were actually insured.

Insurers play a vital…

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UK firms must be diligent over offering credit to Irish firms.

Tom Rolfe says that the ‘wrong’ Brexit deal would have an impact on the Irish economy, which in turn would affect Irish companies that are financially weaker or that operate in markets highly dependent on exports to the UK.

“Some credit insurance experts have suggested all Irish companies will be affected by Brexit, but we think this is overly negative. However certain companies will be more vulnerable depending on a range of factors, such as their reliance on trade with the UK market and their financial resilience. Insurers keep a close eye on gearing, financial…

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We are absolutely delighted to have had a UK Export Finance case study developed to explain how we work together to manage the risks of exporting.

The case study details important information about exporting trade on open credit terms as well as trading with foreign markets and how to find the right credit insurance.

Read the full case study here.

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The end of January saw the release of the Q4 2018 insolvency statistics, published by The Insolvency Service. According to the release, the year closed with the highest number of insolvencies in 12 months since 2014. The numbers have been creeping up year on year; each year since that low point in 2014 has seen an increase on the previous year and all of the research from the credit insurers shows that 2019 insolvencies are expected to be up on 2018.

The sectors currently seen as the highest risk are construction, retail and food & drink though manufacturing and pharmaceuticals…

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According to analysis by market insurer Atradius, a no-deal Brexit will cause short-term uncertainty, is likely to push inflation higher and will create trade frictions. This, according to their report, will supress the UK GDP and may push businesses insolvencies in the UK up by 14% when compared with an ‘smooth transition’ exit with an agreed deal. No deal will also affect the EU27 countries who will see a fall in GDP, but it will of course be much lower than in the UK market at an estimated 0.5% higher than with a deal. The effect on EU27 is still…

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The UK inflation rate fell to 2.1% in December, down from 2.3% in November, according to the Office for National Statistics. The rate is at its lowest in nearly two years, which is in line with analysts’ expectations.

The ease in inflation has been caused by a big fall in petrol prices with oil prices tumbling in the past few months. Hitting the lowest prices since April last year, the price of petrol fell by 6.4p per litre to 121.7p, while diesel fell by 4.6p to 131.9p, the weakest since July 2018.

However, these rates were offset by upward contributions…

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Bristol-headquartered company, Helm Construction has ceased trading after experiencing cash difficulties. The firm which operated mainly within the South West appointed administrators, Opus Business Services on 3rd December 2018.

The organisation, who had 50 members of staff, made redundancies before ceasing trading, leaving the majority of them left without a job before Christmas. Interestingly, after announcing their administration, Opus has received a number of expressions of interests to acquire the assets of the company.

Allister Manson, a partner at Opus said “Helm Construction was placed into administration on Monday (3rd December) and it effectively ceased trading.”

“We are talking to…

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On Friday 30 November the business press ran shock headlines about Kier’s emergency rights issue catching the market off guard. 

The Channel Partnership Director, Tom Rolfe explains the truth behind Kier's bombshell in his latest LinkedIn Article.

Read the full article here.

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The Insolvency Service has released the 2018 Q3 insolvency statistics containing the latest data on company insolvencies from July to September 2018. The main message of the report was that an underlying number of company insolvencies increased both on the previous quarter and when compared to the same quarter in 2017.

During Q3 a total of 4,308 companies entered insolvency; this included 3,083 voluntary liquidations and 741 compulsory liquidations. The figures show an increase in company insolvencies year-on-year, with Q3 showing an increase of 8.3% compared to Q3 in 2017.

The statistics showed that the construction industry had the highest…

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