Numbers from the London Gazette indicate that 1,174 companies or groups were placed into administration in the UK during 2016, compared with a 15 year low of 1,111 in 2015. The peak being in 2009 following the financial crisis when 3,376 companies were placed into administration.
KPMG conducted an analysis of the sectors that were most vulnerable in 2016. This suggested that the biggest impact was on the construction industry as the increased cost of imported raw materials squeezed margins. Overall, 174 construction firms were placed into administration during the year. Other sectors that were hit hard were retail, social care and leisure.
Looking forward, it is anticipated that the number of insolvencies will remain steady in 2017 due to the uncertainty surrounding the triggering of article 50 in addition to inflationary pressure.
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