Almost two in five (38 per cent) insolvent companies across the Midlands have been rescued with the help of the region’s insolvency professionals.

This is according to a new report published this week by insolvency trade body R3 which looks at the impact its members have had on the “fortunes and prospects” of troubled firms across the UK.

The report, Why Insolvency Matters: The Value of the Insolvency Profession to the Midlands, reveals that of approximately 2,500 local businesses entering a formal insolvency procedure in 2013/14, around 958 were rescued and continued to trade. While the business rescue rate in the Midlands is slightly below the national average (41 per cent), it represents the highest total number of business rescues in the UK outside of London (1,546) and the North West (1,243).

The research also highlights that the number of jobs saved in the Midlands is in the top half of UK regions, with over 28,500 individuals working in companies that continued in some form after a formal insolvency procedure.

R3 Midlands chairman Richard Philpott, a partner at KPMG in Leicester, said: “The insolvency profession makes a huge impact on the fortunes of businesses, individuals and creditors throughout the Midlands and across the UK.

“We witness first-hand the human cost of business failure and do everything in our power to rescue both businesses and jobs. Although we are delighted to see the huge difference we have made in the last year, we know that the profession, the government and individuals still have more work to do.

“The next five years could see key changes to the insolvency landscape. Household debts are rising again, and the current climate of creditor forbearance, record low inflation, and record low-interest rates may not last.

“While R3 will continue to make every effort to protect businesses and jobs, it is crucial to note that the sooner an insolvency practitioner’s advice is sought, the more chance there is of business rescue and recovery.”