More builders to face insolvency
Published: 16 July, 2010
MANCHESTER: The number of building companies in financial difficulties fell by 26% between the first quarter and the second quarter of 2010 but more builders are likely to fail, said a financial consultant.
The number of construction firms experiencing "significant" or "critical" financial problems was 17 033 in the second quarter of 2010, according to data from financial consultancy Begbies Traynor.
That figure was 26% lower than the 22,990 suffering similar problems in the first quarter of 2010, and 17% lower than in the second quarter of 2009.
Nick Hood, partner in Begbies Traynor, warned that the UK could develop a twin track economy, with public sector-dependent industries such as construction facing higher levels of financial distress. "Builders, which traditionally account for 20% of UK insolvencies, are likely to be hardest hit of all," he said.