Could Britain’s Economic Recovery Hurt Insolvency Practitioners?
It took a surprisingly small upwards shift in the economy to hurt Begbies Traynor‘s profit outlook, a leading insolvency specialist in the United Kingdom. With the economy moving upwards and many of Britain’s formerly troubled businesses now in a state of financial health, are the nation’s corporate financial companies in for a lacklustre quarter?
The answer, it seems, isn’t quite as simple as many believe. Although the economy is improving and a reasonable number of insolvency cases have disappeared from the public eye, insolvency is still at the height of many businesspeople’s’ minds. There’s been an eighteen percent dip in overall cases; a good sign, but not the major downturn that many economists have been predicting this year.
For Real Business Recovery, it’s an interesting situation. The nation’s economy is getting stronger, a very good thing after years of financial turmoil. In fact, it’s now one of Europe’s leading economies, with hiring figures and demand for skilled employees far above many others. We can only hope that this record growth results in stable income for companies – not the turbulence that’s very possible.
Insolvency cases have dipped seven percent this quarter, down a total of eighteen percent from this time last year. Is is Britain’s ‘return to financial health?’ Possibly, however, it’s important to think of the long-term effects that any major economic shift can result in.