THE number of firms going bust is poised to hit the biggest annual figure since 2009.
In the last three months the tally has climbed ten per cent higher than in the same period last year, according to official government figures.
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There were 6,208 insolvencies from July to September.
And the last two quarters have seen the most since the second quarter of 2009.
In the past year 4,276 construction firms have gone bust, making up nearly a fifth of all the cases where the sector has been identified.
Wholesale, retail and hospitality have also fared badly with firms hit by higher energy bills and business costs, and lower consumer confidence.
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Andrew Goodacre, at the British Independent Retailers Association said: “Our members are telling us all the time how difficult it is on the high street.
“Comments are coming through that it’s ‘Tougher than Covid’ and that they are worn out.”
Mark Ford, partner in restructuring and recovery services at Evelyn Partners, said: “Inflation has sent costs through the roof for most. This is not just for raw materials and energy — and many imports — but also for wage bills as earnings growth has gathered pace.”
The number of businesses in “critical” financial distress surged by nearly a quarter between July and September, compared with the previous three months, says consultancy Begbies Traynor.
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Partner Julie Palmer said: “The construction industry, which has long been a bellwether for the health of the economy, looks particularly vulnerable with more than 70,000 firms in significant financial distress and circa 6,000 in much more serious critical financial distress — often a precursor to formal insolvency.”
She warned: “It is likely to be an insurmountable task for many.”
Individuals have been struggling too.
The number of people taking out a debt relief order — a way for them to deal with debts they can’t control — has surged 49 per cent to a record high of 8,438.
TRADER JOB AXE HITS 300
ONLINE trader IG GROUP has become the latest City business to axe workers.
Around 300 jobs will go as part of a cost-cutting exercise, including structural savings which the firm hopes will save it £50million a year.
Acting boss Charlie Rozes said: “These decisions will ensure the business is well positioned for long-term success.”
Investment manager Brooks Macdonald also said it will slash 55 roles to save £4million. Boss Andrew Shepherd said the cuts will “make the group stronger.”
The City has been involved in a growing jobs bloodbath recently.
HUNT FOR MED OCTOBER
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HOLIDAYMAKERS are booking outside the traditional peak period next year in a bid to find a cheaper break — and dodge the recent blistering summer heatwaves.
Greece and Turkey are already extending their tourist seasons to cope with expected demand, says travel trade group Abta.
October is set to be the third most popular month behind May and June as Brits seek “value” breaks. July and August, the school holiday months, are so far the fourth and fifth most popular, adds Abta.
ADIOS VODAFONE
PHONE giant Vodafone has flogged its Spanish arm for £4.37billion to European telecoms business Zegona Communications.
Vodafone boss Margherita Della Valle said the move was a step in “right-sizing our portfolio for growth”.
Vodafone Spain is the third biggest telecoms network in the country after Telefonica and Orange.
The sale comes four months after Vodafone announced a UK merger with Three owner CK Hutchison to create Britain’s biggest mobile phone network worth £15billion.
BP BLOW AS WIND FALTERS
BP profits fell to £2.7billion in the last three months, down from £6.8billion a year earlier.
The energy giant expected to make around £3.3billion but faced a £444million loss on its US offshore wind portfolio.
It said gas and low carbon energy production was almost two per cent lower in the first nine months of the year than last year, while oil production climbed six per cent.
Boss Bernard Looney was pushed out in September after failing to disclose past relationships with colleagues.
Interim boss Murray Auchincloss said BP was “on track to deliver strong returns for our shareholders”. But green groups accused the firm of putting profit ahead of planet.
Joseph Evans, of the IPPR think-tank, said: “It’s clear that oil and gas companies are prioritising their shareholders at the expense of the transition to clean energy.” BP Shares fell around 5 per cent on the news.
COKE STILL TOP GLASS
COCA-COLA’S European bottling business Coca-Cola HBC said revenue grew 15 per cent in the last quarter despite consumers cutting back in Eastern Europe.
The firm, which has faced criticism for continuing its operations in Russia, admitted sales in Ukraine had declined by “low-single digits” in the last three months.
Sales in Russia were “higher on an organic basis” than 2022 but down 40 per cent on 2021.
£2BN ASDA DEAL
AMBITIOUS supermarket Asda yesterday completed the £2billion acquisition of the EG Group’s UK business.
It is set to turn the 356 EG petrol convenience stores into Asda Express branches.
The new convenience brand has already opened at 119 former Co-op Group sites.
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Asda spent £438million on the Co-op sites last year as part of its bid to be the UK’s second largest supermarket.
Asda co-owner Mohsin Issa said: “The iconic Asda sign is now coming to hundreds more communities.”
