SOUTH EAST DATA: Southern and Thames Valley R3 chairman Garry Lee says business continue to face economic headwinds
Nearly 17,000 new businesses launched in the second quarter of 2022 in the South East, according to the R3 insolvency trade body.
A total of 16,947 companies started up in April, May and June – including 5,629 last month (JUNE) – despite rising inflation, economic uncertainty and increased interest rates.
The figures placed the South East fifth of 12 UK regions for the number of start-ups in the second quarter of the year.
They were down slightly – by 5% – on the 17,840 start-ups created in the first quarter of 2022 in the South East.
With data provided by business intelligence provider Creditsafe, analysis by R3 has also revealed that insolvency related activity remained steady in June in the South East,
There were 170 counts of corporate insolvency related activity in the month compared with 168 in May – the lowest increase in the UK, an increase of just 1.2% compared with a 22% jump in the North West, which showed the highest regional increase.
Garry Lee, chair of R3’s Southern and Thames Valley region, said: “Economic headwinds continue to increase for many sectors of the economy.
“Despite this, it is encouraging to see that the entrepreneurial spirit remains strong in the South East and insolvency related activity is holding steady.
“Inevitably, conditions will worsen before they improve amid a tightening employment market and the ongoing impact of increasing inflation and costs as well as rising interest rates.”
Garry, who is an associate director in the recovery and restructuring services department at professional services group Evelyn Partners’ Southampton office, warned that circumstances could change quickly.
“Some directors and company owners will be able to identify opportunities or adapt their business model. Others may find the economic climate more challenging or be hit hard by events, such as an unpaid invoice or sudden costs.
“Any business which does experience signs of financial distress is urged to seek support from a qualified and regulated advisor as soon as possible.
“Doing nothing is not an option when the cracks begin to show. The sooner expert, professional advice is sought, the sooner action can be taken and more options are open to help secure the best outcome.”
Insolvency related activity includes Creditor Voluntary Liquidations, Company Voluntary Arrangements, administrations and creditors’ meetings.
Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.
R3’s Southern & Thames Valley region includes Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight and Berkshire.
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