Business news 1 November 2023
James Salmon, Operations Director.
Insolvencies up 10% in Q3. And more business news that we thought would interest our members.
Insolvencies up 10% in Q3
Official figures show that insolvencies across England and Wales were up 10% year-on-year in the three months to the end of September, with the number of companies going bust this year on track to be the highest since during the financial crisis.
Insolvency Service data shows that there were 6,208 registered company insolvencies between July and September, compared to 5,635 in Q3 2022. While Q3’s number was up year-on-year, it came in 2% lower than the 14-year high recorded in Q2. In the nine months to September, 18,367 businesses entered insolvency – with this up 13% on the total recorded in the first three quarters of 2022.
Simon Edel of EY-Parthenon noted that since the pandemic, insolvency activity had been concentrated among smaller companies but that it is now spreading to medium-sized and larger businesses.
Meanwhile, insolvency experts at Begbies Traynor say the number of businesses in “critical financial distress” – those with county court judgments exceeding £5,000 against them – has jumped 25% in the last three months, hitting 37,722. The firm’s Red Flag Alert also reveals that almost 480,000 businesses across the UK were in “significant’ financial distress” in the third quarter.
Eurozone GDP
Eurozone GDP fell by 0.1% in July-September, data showed, worse than the stagnation which economists expected. The wider European Union grew by 0.1%. However, there was better news on inflation, which has been a major limiting factor on growth. Eurozone annual inflation is expected to be 2.9% in October, down from 4.3% in September, according to a flash estimate. This was below the 3.1% pencilled in by economists.
Home Sales
UK Home Sales were 17% lower in September than in the same period in 2022, according to HM Revenue & Customs figures. Across the UK, an estimated 85,610 home sales took place in September 2023, which was also 1% lower than in August. In the financial year so far (April to September), an estimated 507,670 home sales have taken place.
Meanwhile, Nationwide reported that UK house prices rose by 0.9% month on month in October, confounding predictions of a 0.4% fall. The average price of a property sold last month rose to £259,423, up from £257,808, according to figures from the lender. That still leaves house prices down 3.3% compared to October 2022, though, which is a smaller annual fall than the 5.3% recorded in September.
Samsung Electronics
Samsung Electronics reported quarterly operating profit that was better than expected despite dropping 77.6% from a year ago. While it was a decline year-on-year, third quarter operating profit jumped 262.6% from the second quarter, signaling that a memory chip glut may be bottoming out. First quarter operating profit plummeted 85.15% from the fourth quarter of 2022, while second-quarter operating profit saw only 4.68% improvement from the first quarter.
We Work
We Work is reportedly preparing to enter bankruptcy as the office space company struggles in the higher interest environment.
AI
AI was named word of the year by Collins after use of the acronym, defined as “the modelling of human mental functions by computer programs,” quadrupled over the past year. It beat buzz words including “greedflation,” “debanking” and “nepo baby” to take the top spot.
Storm Ciaran
Hurricane strength winds are to hit the Uk late Wednesday and through to Friday. The UK Met Office issued an amber warning for southern England for Thursday as “very strong” winds could bring danger to life from flying debris, damage to power lines and canceled trains and flights.
Markets
Markets are rising modestly as they await the US Federal Reserve’s latest policy decision on interest rates after a tough October. The Federal Reserve is poised to hold interest rates steady at a 22-year high for a second meeting, while leaving open the possibility of another hike as soon as December with economic growth staying resilient. Overnight, the DOW rose 0.38%, the S&P 500 rose 0.65%. and the NASDAQ rose 0.48%. Oil is edging back up.
China
China’s Manufacturing Sector contracted in October for the first time in three months, dragged down by weak external demand, a Caixin-sponsored survey showed Wednesday. The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the sector, fell to 49.5 in October from 50.6 the previous month. An index reading above 50 signals an expansion in activity, while a number below that indicates a contraction.
Think-tank: Higher tax burden needed to maintain public services
The Centre for Progressive Policy has warned that the next government will have to increase the overall tax burden in order to maintain current levels of public services. According to the think-tank, spending will need to be increased by £142bn per year up to 2030 just to “stand still” due to the rising costs of an ageing population. However, the report suggests that this increase does not necessarily have to come from income tax, but could be achieved through changes to the tax system. The report recommends that a reformed tax system should focus on wealth rather than pay.
Latest Insolvencies
Appointment of Liquidators – ALGOMASTERS LIMITED
Appointment of Liquidators – NISUS SYSTEMS LIMITED
Appointment of Liquidators – AULD PARTNERS LTD
Appointment of Liquidators – DJ COALESCE LIMITED
Appointment of Administrator – KDR TALENT SOLUTIONS LTD
Appointment of Liquidators – LEAN STEER LIMITED
Appointment of Liquidators – EQUILIBRIUM CONCEPTS LTD
Appointment of Liquidators – KITECASK LIMITED
Appointment of Liquidators – MSTEK LTD
Appointment of Liquidators – QUATTRO BIDCO LIMITED
Appointment of Liquidators – BENCHMARK ELECTRONICS LIMITED
Appointment of Liquidators – WELLBORN HOMES LTD
Appointment of Liquidators – ITCT CONSULTING LIMITED
Appointment of Liquidators – LANDMARK FINANCIAL PLANNING LIMITED
Appointment of Administrator – STEVENAGE CIRCUITS LIMITED
Appointment of Liquidators – KMC RUSSELL SQUARE LIMITED
Appointment of Liquidators – ALAN D RICHARDS LIMITED
Appointment of Liquidators – GENERAL COUNSEL CONSULTING LTD
Appointment of Administrator – REAL BREWING PUB COMPANY LIMITED
Appointment of Liquidators – REBOOT ME CONTRACTORS LIMITED
Appointment of Liquidators – DIGITAL DIMENSIONS LTD
Appointment of Liquidators – NINE SIX NINE CONSULTANTS LIMITED
Appointment of Liquidators – MARK NORMAN LIMITED
Petitions to wind up (Companies) – EARLY EDUCATION ALLIANCE LTD
Appointment of Liquidators – ROSEWORTH GROUNDWORKERS LIMITED
Appointment of Administrator – MAP TAVERNS LIMITED
Appointment of Liquidators – SHOGUN INTERNATIONAL LIMITED
Petitions to wind up (Companies) – NICK BROWN LIMITED
Appointment of Liquidators – HAMELL (WEST) LIMITED
Appointment of Liquidators – WATER GREEN ENVIRONMENTAL LIMITED
Petitions to wind up (Companies) – NEWMAN BONAR LTD.
Petitions to wind up (Companies) – HSA DIY LIMITED
Appointment of Liquidators – GLENHOMES CARE HOME LIMITED
Appointment of Liquidators – NORTHUMBERLAND GARDEN DESIGN LIMITED
Petitions to wind up (Companies) – PRO-WASH CLEANING SERVICES LTD
Appointment of Liquidators – SIGMA MOBILE LTD
Appointment of Liquidators – CLIFTON CORPORATE FINANCE LTD.
Appointment of Liquidators – WATERSIDE CLOSE LIMITED
Appointment of Liquidators – RHISO HOLDINGS LIMITED
Appointment of Administrator – VAL KAY’S LIMITED COMPANIES LTD
Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for some time to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the debt value maybe!
Just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!
If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA for purchase on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.
Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.
Just call 020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
Check our compensation calculator to see how much your business could be owed!
Discover NOW the potential value of late payment compensation hidden in your sales ledger!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.