Administration List’s monthly data for August reveals a drop of over 22 per cent (22.3 per cent) in the number of insolvent businesses listed on the site in comparison to July 2020.

According to our data, there were 260 insolvencies listed in July as opposed to 202 insolvencies in August.

In what is already proving a tumultuous and unpredictable third quarter, the 22 per cent drop may offer UK businesses a thin vestige of hope as the government continues to aid the UK economy amidst a global pandemic.

A correlating theme in these reports has been the continued demise of retail and construction – and this month’s data is no different.

However, an increase in engineering insolvencies (up 23 from July) perhaps illustrates the precarious nature of industries that require physical task forces in usually large numbers. Additionally, a shortage of skilled workers, as well as a rapid cutback in both commercial and governmental builds, means that future projects may well be put on hold.

Whilst Westminster has actively encouraged construction during the pandemic, a lack of certainty around the economic viability of future projects appears to be hurting the sector’s profit margins.

Report of companies listed with Administration List as having appointed administrators or liquidators during August 2020. Data from www.administrationlist.co.uk

Perhaps the biggest name to go under, as we reported in August, was the travel company STA Travel following unprecedented flying restrictions.

The overall gap between administrations and liquidations also took a noticeable surge, with only 24 administrations in comparison to 179 liquidations.

This data forms part of Administration List’s concerted efforts to routinely monitor insolvencies across the country as the UK economy grapples with the coronavirus pandemic.

Report of companies listed with Administration List as having appointed administrators or liquidators during August 2020. Data from www.administrationlist.co.uk

Comment:

Stephen Ideh, Director of Administration List, commented:

“It remains a sorry sight for retail and construction companies. One hope for the former has been the government’s month-long Eat Out to Help Out campaign. Before the close of Monday’s summer bank holiday, customers were offered 50 per cent off restaurant meals every Monday, Tuesday, and Wednesday.

“Interwoven into the woes of construction, real estate, transport, and indeed a myriad of other sectors, is engineering. It’s little surprise that these bottleneck issues are harming the industry.

“As engineering executives do their best to acclimatise, innovative and eye-catching builds once synonymous with large swathes of the country (particularly London) may take a backseat in favour of more cost-effective and government-backed projects, thus leading to more competition for fewer and less remunerated projects.

“If that is the case, I expect insolvencies in this field to rise in a similar trajectory to retail and construction sectors.”

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About Administration List

Founded in 2017, Administration List provides information to its subscribers on distressed businesses in the UK.

Subscribers have access to data including details of administrations and liquidations, administrator contact details and the company’s financial records all in one place.