Level of firms going under at ten year low

Data compiled by industrial auctioneers CJM Asset Management showed that it had not dealt with any significant company insolvency of any size at all in the last year with figures now at a similar level to that which was last seen in 2007.

CJM’s managing director of its Scunthorpe-based operation, Charles Moses, said that the numbers were an encouraging indicator of business confidence.

“We have not dealt with a single company insolvency of any size in the region in the past 12 months,” said Mr Moses.

“That’s the first time that’s happened in years.”

“Of course there have been failures – and the bald national figures indicate that the number of insolvencies increased last year – but most of the businesses that are going under are start-ups or fledgling ventures that hit problems in the difficult first two or three years.

“They’re usually small and they usually own little in the way of assets that need to be recycled back into the market.”

Mr. Moses added: “Where we have been seeing a significant uplift is in the amount of used kit that we’re being asked sell as companies invest in new equipment. That’s an encouraging indication that at the moment GB Limited is feeling more confident about its prospects.”

“Whether or not that confidence survives in the coming months remains to be seen. Accurately forecasting what the economy is likely to do is never easy but - with Brexit, the Trump Presidency, the possibility of trade wars and everything else that’s going on - it’s just impossible this year. Hopefully things will be okay but there’s no doubt we’re in for a nerve-jangling time.”

The claims are made just days after The Yorkshire Post published data showing that the region’s hospitality industry was outperforming many other parts of the country in what is traditionally one of the toughest months of the year for the sector.

The latest figures show that the proportion of hotels in Yorkshire at higher than normal risk of insolvency in January was down to 17.9 per cent, well below the national average of 19.4 per cent.

Of the 535 active hotels in the region, only 96 are identified as being at higher than normal risk.

Looking at Yorkshire’s performance compared with the other 11 regions surveyed across England, Wales, Scotland and Northern Ireland, it was only out-performed by London with 16.9 per cent of hotels at higher than normal risk. In contrast, the West Midlands, the South West and the South East saw the highest levels of risk in the sector – all had levels above 21 per cent.