Edward Symmons’ Q1 insolvency statistics maintain 2010’s gloomy outlook for construction and retail

Date of Press Release: 13|4|2011

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Robin Pritchard, Head of National MBA at Edward Symmons commented: “these figures will come as little surprise, and with the Budget announcing public construction costs to be cut by 20% and 14 prominent retailers issuing profit warnings in this week alone, while publicly bracing themselves for a ‘really dreadful March’, the long term outlook for these sectors remains relatively bleak. The real test will come when we see a change in interest rates – we would anticipate that sector trends from our insolvency case load may not subsequently be so clear cut.”

Q1 statistics echo and build upon the trend that emerged from Edward Symmons’ 2010 figures, where construction accounted for around 15% of cases, and emerged as the sector hardest hit by the recession. Insolvencies in construction have now risen to 21% of the Q1 case load, while retail insolvencies, which made up some 12% of cases during 2010, have also increased to almost 20%.

Figures were collated from cases recorded across the following sectors over the course of Q1: Audio and Visual, Automotive, Chemicals, Construction, Electronics, Engineering, Fabrication, Food, Horticultural, Hospitality and Leisure, IT, Professional Services, Plastics and Rubber, Property, Publishing, Recruitment, Retail, Textiles, Timber, Transport and Wholesale. According to the case load, publishing emerged as the third hardest sector hit, followed by engineering and food.

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For further press information please contact Sophie Elliott at Redwood Consulting on 020 7828 5553. [email protected]