Over 2,600 UK construction companies fell into insolvency during 2016/17, according the Insolvency Service, up 8 per cent on the previous year. The number of business failures is however predicted to rise this year, following the collapse of Carillion, as subcontractors in its supply chain miss out on payment.
The forecast comes just days after monthly Markit/Cips UK construction PMI figures for housebuilding activity showed the first fall since just after the EU referendum. The PMI was 50.2, down from 52.2 in December, a further warning that the building industry has been severely rattled by Carillion.
In this volatile economic landscape, it is essential that UK SME business owners maintain effective management of their company’s working capital and put processes in place to survive and thrive in challenging times. A first step is to contact our specialist advisers at Beavis Morgan for guidance and strategic advice to help in formulating plans for your business in order to strengthen its prospects of success, achieve growth and maximise wealth.
If you have any concerns about your personal financial situation or that of your business, contact Andy Pear or Mike Solomons at BM Advisory to arrange an initial confidential consultation which will be free of charge and without obligation. Together we will discuss your individual situation and advise on the best course of action.
Our partner business BM Structured Finance is also available to help with sourcing and restructuring debt finance for SME businesses.