A sharp decline in administrations in June contributed to a continuing fall in the number of companies experiencing financial problems during the second quarter of 2013, according to research from FRP Advisory say Harris & Co chartered accountants Northampton, the specialist small business accountants.
The firm’s figures show a 6% drop in total Q2 administrations compared to Q1. Administration appointments in England and Wales totalled 135 during June, a fall of 33% over May and down 29% from the average monthly run rate of 189 for the first two months of the second quarter.
While administrations for March marked a peak of 227 for 2013, June’s result record a low point for the year and reflect a 42% decline on March"s high.
Andrew Sheridan, partner at FRP Advisory said: ‘The decrease results from a combination of extended low interest rates, a more flexible approach to rental payments by landlords (in the face of reduced demand for space and the spectre of punitive empty rates) and the continuing survival of those businesses which have managed to trade through the past five years, and which now may thrive after the demise of competitors in their same space.’