Deloitte surprised by lack of administrations in 2010

AGGRESSIVE cost cutting and improved cash management by firms last year has seen the number of businesses falling into administration in 2010 drop.

Research by the business advisory firm showed that 555 administrations were recorded in quarter one 2010, a significant improvement on the 1,028 companies in the same period last year.

Deloitte said it was surprised by the magnitude of the decline, as traditionally administrations increase after the festive season.

Lee Manning, reorganisation services partner said: “This year we have not seen this and the trend suggests that we may well have turned a corner.”

And from October to March a total of 1,154 companies went into administration, the lowest figure recorded in this six month period for the past four years. But Deloitte warned that conditions remain fragile"