Business news 22 December 2023
James Salmon, Operations Director.
CPA holiday closures. Britain and Switzerland sign financial services deal. Construction insolvencies, Cautious consumers & more business news that we thought would interest our members.
For CPA Members – CPA over the holidays
CPA is shutting down for the holidays today at 1pm and opening again on Tuesday 2nd January 2024.
Please note that due to planned maintenance work – the members area of our website will be unavailable from Monday 25th December. It should be up and running on Friday 29th or if possible earlier.
Breaking News – update – GDP & Retail
UK GDP fell 0.1% in the third quarter. Year on Year GDP was up 0.3%. The UK economy unexpectedly shrank in the third quarter in a revision to the GDP figures, raising the possibility that Britain is already in a recession and boosting predictions of the Bank of England cutting interest-rate as soon as the spring
UK rtetail sales rose 1.3% month on month in November – 0.9% above consensus.
Britain and Switzerland sign financial services deal
Britain and Switzerland have signed a wide-ranging financial services deal to boost trade and cut compliance costs. The deal, based on mutual recognition of rules and supervisors, will require parliamentary approval from both countries. The agreement is a boost for Britain’s financial services industry, which has had to look further afield for business after Brexit. It is also a boost for Switzerland, which has never joined the EU and was the world leader in cross-border wealth management for private clients in 2022. The deal represents a higher level of reciprocal trust in each other’s regulators than the EU has shown to Switzerland or Britain since Brexit. “The Berne Financial Services Agreement is a global first and builds on the UK and Switzerland’s strengths as two of the world’s largest financial centres,” UK Chancellor Jeremy Hunt said in a statement. “It will also help level the playing field for smaller firms, who will no longer have to invest time and money in navigating unfamiliar Swiss rules.”
Construction insolvencies surge by 36%
Construction insolvencies in the past year were 36% higher than before the pandemic, according to the latest figures from the Insolvency Service. A total of 4,317 construction firms went out of business in the year to 31 October 2023, a jump of 9% from the previous year. The number of insolvencies in the year to October 2023 is 36% higher than in the year to January 2020. Construction Products Association economics director Noble Francis warned that contractor insolvencies are at the highest level since the financial crisis of 2008/09 and are likely to rise further in 2024. Specialist contractors accounted for 58% of the insolvencies. The Construction Alliance North East (CAN) group called for a reduction in planning delays to support SME contractors and urged local authorities to address the issue. CAN chair Ken Parkin emphasised the importance of meeting planning timeframes and deadlines to prevent regional contractors from facing financial difficulties.
Cautious consumers increase risk for UK retailers
The financial situation is deteriorating for UK retailers as consumers tighten their purse strings heading into 2024. A report by insolvency firm Begbies Traynor warns that poor consumer confidence, sticky inflation, and elevated interest rates are causing consumers to hold back from spending, even during the festive season. The retail sector heavily relies on the “golden quarter” for profits, but sales have been slipping, particularly for big-ticket items. The report reveals that nearly 4,500 UK retailers are in critical financial distress, with over 46,000 in significant distress. Online-only retailers are also struggling, as consumers shift back to bricks and mortar stores. The report suggests that operating an omni-channel business model is crucial for success. Paul Martin, partner and UK head of retail at KPMG, which helps to produce the monthly sales monitor, added: “Looking ahead to the early months of 2024, the challenges are expected to persist, posing a threat to the sector and potentially leading to more casualties.”
Government borrowing higher than expected in November
Government borrowing in the UK was higher than expected in November, reaching £14.3bn. This is £900m less than the previous month but higher than the forecasted £13.1bn. The level of borrowing for November was the fourth highest since records began in 1993. Borrowing for the financial year-to-date stood at £116.4bn, £24.4bn more than the same period last year. The Office for Budget Responsibility had forecasted lower borrowing. Increased benefit payments and higher staffing costs contributed to the rise in borrowing. Net debt at the end of November stood at £2.67trn, equivalent to 97.5% of UK GDP. Divya Sridhar, an economist at PwC UK, said: “Looking ahead to the new year, falling inflation will provide some relief to public spending through both debt interest payments and inflation-linked social benefits expenditure. However, tax cuts announced in the autumn statement last month will come into play, and sluggish growth will also impact Government revenues.”
Hunt envisages rate cuts followed by tax cuts next year
Jeremy Hunt has suggested the Bank of England may reduce interest rates in 2024, providing a boost to the UK economy before the election. The Chancellor also hinted at further tax cuts in the spring in the hope the anticipated fall in interest rates will lower the cost of servicing Britain’s debt. In an interview with Bloomberg TV, Mr Hunt said: “Rishi Sunak and I have said that we would like to cut the tax burden more if we are able to do so. We would like to bring down the tax burden in a way that is responsible if we’re able to do so. But right now our priority is to bring down inflation.” The Chancellor added: “If debt interest payments go down then potentially that gives me more headroom. And I could use that in lots of different ways but I would never use that in a way that compromised the battle against inflation.”
UK house prices fall at fastest pace in more than a decade
Figures from the Office for National Statistics show that average UK house prices declined by 1.2% in the 12 months to October 2023, down from a revised fall of 0.6% in September. This marks the biggest annual decline since October 2011, but it is much less than most analysts were predicting this time a year ago. Analysts said the relatively modest decline was because fewer homes were being put up for sale, preventing supply from getting too far ahead of demand. Prices in London fell the most, down by 3.6% year-on-year, although homes in the capital remain the most expensive at £515,500, on average. In England, prices declined by 1.4% to £306,000, on average. In Wales, prices slid by 3% while Northern Ireland and Scotland saw prices rise by 0.2%. The northeast was the only region in England to generate an increase, albeit one of only 0.2%.
Dealmaking expected to surge in Q1
Private equity firms are gearing up for a busy start to 2024, with a flurry of interest and activity expected in the first quarter. Companies looking to sell are floating “teasers” to the market, giving potential buyers time to assess assets and do due diligence. The more stable rate environment and potential rate cuts next year are allowing private equity firms to finance deals more predictably. Lawyers and bankers are also anticipating a wave of public-to-private deals in London, as volatility settles and firms consider de-listing.
Latest Insolvencies
Appointment of Liquidators – BP EXPLORATION PERSONNEL COMPANY LIMITED
Appointment of Liquidators – K GRAYS AMUSEMENTS LTD
Appointment of Liquidators – NEWTON PLACE GLASGOW LIMITED
Appointment of Liquidators – BLUE HAZEL DEVELOPMENTS LIMITED
Appointment of Liquidators – CERBERUS ACTUARIAL LTD
Appointment of Liquidators – MOORE MANAGEMENT DEVELOPMENT LIMITED
Appointment of Liquidators – INSULATED DAMP-PROOF COURSE LIMITED
Appointment of Liquidators – WTW MUSIC LTD
Appointment of Liquidators – NOEL TECHNICAL SOLUTIONS LIMITED
Appointment of Liquidators – SKILLS2LEARN LTD
Appointment of Liquidators – BELLEROPHON PROJECTS LLP
Appointment of Liquidators – WINNING WAYS TO BUSINESS LIMITED
Appointment of Administrator – SOFTWARE SOLVED LIMITED
Appointment of Liquidators – LANCER PROPERTY ASSET MANAGEMENT LIMITED
Appointment of Liquidators – TARGET GROUP HOLDINGS LIMITED
Appointment of Liquidators – MOUNTLODGE LIMITED
Appointment of Liquidators – WHH INVESTMENTS LIMITED
Appointment of Liquidators – STOWMARKET MILL LANE DEVELOPMENT LIMITED
Petitions to wind up (Companies) – ZY RETAIL LTD
Appointment of Liquidators – MACQUARIE LEASING (UK) LIMITED
Appointment of Liquidators – SAND MEDIA LTD.
Appointment of Liquidators – MACQUARIE AEROSPACE INVESTMENTS LIMITED
Appointment of Liquidators – FR AVIATION GROUP LIMITED
Appointment of Liquidators – GIG OSW EXTENSION TOPCO LIMITED
Appointment of Liquidators – LOCKMAN ELECTRONIC HOLDINGS LIMITED
Appointment of Liquidators – ADS SECURITIES LONDON LIMITED
Appointment of Liquidators – DPA INVESTMENTS LIMITED
Appointment of Liquidators – AJI PROPERTY LIMITED
Petitions to wind up (Companies) – CENTRAL UNION DIRECT LTD.
Appointment of Liquidators – AHMET ABDI LTD
Appointment of Liquidators – BUCYRUS UK LIMITED
Appointment of Liquidators – PARABOLICA ASSOCIATES LTD
Appointment of Liquidators – WEATHERFORD (G.B.) LLP
Appointment of Liquidators – MACQUARIE CORPORATE AND ASSET FINANCE 1 LIMITED
Appointment of Liquidators – GUIRE CONSULTING LTD
Appointment of Liquidators – INTELLIGIS LIMITED
Appointment of Liquidators – A & R FINNIE LIMITED
Appointment of Liquidators – HOWARD KENT (TRANSPORT) LIMITED
Appointment of Liquidators – LEYS BUSINESS SERVICES LIMITED
Appointment of Liquidators – DAENERYS LIMITED
Appointment of Liquidators – MANLOCK INVESTMENTS LIMITED
Appointment of Liquidators – VITAMIN SOFTWARE CONSULTING LIMITED
Appointment of Liquidators – BERKLEY PROFESSIONAL LIABILITY UK LIMITED
Appointment of Liquidators – MORGAN BETON AND MONIERBAU LIMITED
Appointment of Liquidators – THE HORSE & GROOM (ST LEONARDS) LIMITED
Petitions to wind up (Companies) – QUEST ESTATES (DEVELOPMENTS) LTD
Appointment of Liquidators – THE KINCH GROUP LIMITED
Appointment of Liquidators – AT FAMILY HOLDINGS LTD
Appointment of Liquidators – QIQA LIMITED
Appointment of Liquidators – WORT CHERRY LIMITED
Petitions to wind up (Companies) – AGENCY PAYROLL SERVICES LIMITED
Appointment of Liquidators – B.R.A.H.M.S. UK LTD
Appointment of Liquidators – CLARK THOMSON INSURANCE BROKERS LIMITED
Appointment of Liquidators – FRANK MCLOUGHLIN LIMITED
Appointment of Liquidators – BUCYRUS EUROPE HOLDINGS LIMITED
Appointment of Liquidators – OAKWOOD LEADERSHIP AND MANAGEMENT CENTRE LIMITED
Appointment of Liquidators – ARTSANA U.K. LIMITED
Appointment of Liquidators – LEEDON CONSULTING LIMITED
Appointment of Administrator – ENGAGE OUTDOOR MEDIA LIMITED
Appointment of Liquidators – CHALK FARM ENTERPRISES LIMITED
Appointment of Administrator – COTSWOLD VILLAGE (ASHTON KEYNES) LIMITED
Appointment of Liquidators – BREED REPLY LIMITED
Petitions to wind up (Companies) – SWIFTRAPID LIMITED
Appointment of Liquidators – HARRY MANAGEMENT COMPANY LIMITED
Appointment of Liquidators – EDELSTAFF LTD
Appointment of Liquidators – BARTHOLOMEW WILKINS AND PARTNERS LIMITED
Appointment of Liquidators – QA WIZARDS LIMITED
Appointment of Liquidators – CLIFFASH LIMITED
Appointment of Liquidators – VINMAR CONSULTANTS LTD
Appointment of Liquidators – PINNACLE HOLDINGS LIMITED
Appointment of Liquidators – ALMA DEVELOPMENTS LIMITED
Appointment of Liquidators – MERSEA HOMES HOLDINGS LIMITED
Appointment of Liquidators – MEDICAL HOUSE (ASI) LIMITED
Appointment of Administrator – PURE COPPER RECYCLING LTD
Appointment of Liquidators – BIBURY LEGAL CONSULTING LIMITED
Appointment of Liquidators – SJP CONSTRUCTION LIMITED
Petitions to wind up (Companies) – POWERHUG LTD
Appointment of Liquidators – DYSON RESEARCH LIMITED
Appointment of Liquidators – MAISON SECONDAIRE LIMITED
Appointment of Administrator – K-SAFE LIMITED
Petitions to wind up (Companies) – AQUILA ASSOCIATES LTD
Petitions to wind up (Companies) – RANA METALS TRADING LTD
Petitions to wind up (Companies) – EVERGREEN AIR CONDITIONING LTD
Appointment of Liquidators – MC PARTNERS LLP
Appointment of Administrator – WOODWARDS LAW LTD
Appointment of Liquidators – EAST ENGINEERING (HOLDINGS) LIMITED
Appointment of Liquidators – MATTHEW BIRKILL LIMITED
Appointment of Liquidators – WORTHINGTON PRECISION LIMITED
Petitions to wind up (Companies) – WHITEHEAD SERVICES LTD
Appointment of Liquidators – CHURCH UK RETAIL LIMITED
Appointment of Liquidators – MAYFAYRE FINANCIAL SERVICES LTD
Petitions to wind up (Companies) – MIR INT’L LIMITED
Petitions to wind up (Companies) – CC ESTIMATING & DRAWING LIMITED
Appointment of Liquidators – MJK MEDICAL LIMITED
Appointment of Liquidators – GEHC (ATL) LIMITED
Appointment of Liquidators – MAAS GLOBAL UK LTD
Appointment of Administrator – BRANDED BUILD LTD
Appointment of Administrator – KANISI LTD
Petitions to wind up (Companies) – RHINO AGGREGATES LIMITED
Appointment of Liquidators – DLE SUPPLY CHAIN SOLUTIONS 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.