We have seen a large increase in the number of Insolvencies in the construction industry recently. The number of construction firms falling into administration leapt by over half during the third quarter of 2019.
Profit margins in this sector are being squeezed, which has resulted in reduced credit terms for the supply of goods and a general lack of appetite for both finance and credit insurance.
According to a recent article in Construction Enquirer, Blair Nimmo, head of restructuring for KPMG UK, said: “The building and construction sector continues to feel the strain of the ongoing economic uncertainty across the UK, with a softening in activity and delays in investment for large construction projects.
“Indeed, there has been pressure throughout the whole supply chain, not least due to high input prices, all of which has resulted in a spike in the number of insolvencies.”
The team at Poppleton & Appleby, work with a number of finance houses and professionals in this sector who are prepared to invest in the right projects, but only if and when action is taken at an early stage.
It is important that if a company is facing possible financial issues that they are proactive as this always results in an enhanced return for all stakeholders.