UK’s zombie firms taking a bite out of productivity November 18, 2013 THOUSANDS of heavily indebted firms are holding back the UK’s recovery, kept above water by historically low interest rates, according to a new report published today. According to research by the Adam Smith Institute, a Westminster think tank, 108,000 so-called zombie businesses across the country are only able to service the interest on their debt, [...]
Why we can still save the zombie firms hindering the UK economic revival November 17, 2013 AFTER the worst recession in living memory, the UK’s recovery feels decidedly sluggish. While the US and German economies are larger than ever, the UK is still well below its pre-recession peak. Yet insolvencies are at a historic low and many businesses seem to be (just about) surviving. Why is this? According to R3, the [...]
RSA shares dive after second profit warning November 12, 2013 SHARES in RSA Insurance plunged 11 per cent yesterday, making it the second biggest faller in the FTSE, after the group uncovered problems at its Irish business that led to its second profit warning within a week. Analysts downgraded their recommendations yesterday following the insurer’s warning after market closed on Friday that “issues” within Ireland’s [...]
Carbon credit scam crackdown November 6, 2013 19 firms selling carbon credits have been shut down in the past 15 months for ripping off investors, UK regulators said yesterday. The Insolvency Service said more than 1,500 investors had been defrauded out of £24m, and together with the Financial Conduct Authority, warned investors against buying the products. Firms selling the credits, which are [...]
Growth fears as credit cards drive recovery October 28, 2013 HOUSEHOLD borrowing is set to grow this year for the first time since the credit crunch struck, according to forecasts out today from the Ernst and Young ITEM Club. But business borrowing and investment remains weak, raising concerns over an imbalanced, consumer-credit fuelled recovery. The economists predict consumer credit will gradually pick up pace, growing [...]
Insolvencies down on recovery October 21, 2013 THE ECONOMIC recovery and ultra-low interest rates are keeping insolvencies low, as Experian data today shows the fifth consecutive monthly fall. A total of 1,609 firms became insolvent in September, a rate of 0.07 per cent – down from 0.08 per cent or 1,679 in the same month last year. Large firms, with over 501 staff, [...]
Zombie estate agents at risk from rate rise October 14, 2013 ALMOST half a million British firms are now zombies, only able to stay afloat because interest rates are so low, insolvency practitioners Begbies Traynor estimated yesterday, with estate agents the worst affected. One in seven firms can barely cover their interest payments and are at risk of going under if rates go up, amounting to [...]
Spotlight on Financial Fair Play in Football: Giant-killing lawyer sets sights on Euro regulators October 2, 2013 A COURTROOM battle that threatens to derail European football’s new Financial Fair Play (FFP) rules before they have had a chance to change the sport’s landscape is set to start today. Ground-breaking Belgian lawyer Jean-Louis Dupont, who irrevocably altered the transfer system by winning the Bosman ruling in 1995, is leading a challenge to FFP’s [...]
Begbies Traynor warns of lower earnings due to insolvency fall October 1, 2013 RESTRUCTURING specialist Begbies Traynor yesterday said revenues were currently lower than last year due to “suppressed” conditions in the insolvency market. The company, which helps businesses restructure when they fall into insolvency, said a 13 per cent decline in insolvency appointments across the country had been bad news for its own business. The gloomy prediction [...]
Coeure calls for limited national control on bloc’s banking union September 30, 2013 EUROPEAN Central Bank (ECB) board member Benoit Coeure argued in favour of limiting Eurozone nations’ discretion over new bail-in rules during a speech yesterday. Coeure said: “The degree of discretion national resolution authorities will have in applying the bail-in rules… in my view should be as constrained as possible.” Some leaders have dragged their feet [...]