More UK companies are set to enter administration this year than last year, analysts have warned.
Risk consultancy Kroll said yesterday that it predicted that the UK could face up to 895 company administrations in 2022, compared to just 659 in 2021.
So far there have been 522 administrations this year, with an average of 75 a month – 36 per cent higher than last year.
The industries most impacted include construction, manufacturing and real estate, with 76, 72 and 60 administrations this year respectively.
The total number of company administrations peaked in March, at 96, but has since fallen to 75 in July.
The figures come amid a backdrop of soaring inflation, with the Bank of England forecasting a long recession starting at the end of this year lasting until the end of 2023.
Benjamin Wiles, managing director at Kroll, said “for now, consumer spending remains robust, but there are indications that consumer confidence is lowering.”
Despite the pressure on companies, Wiles said that there were still some support schemes available for businesses.
The projection for 2022, however, is still set to be less than before the Covid-19 pandemic, where there were 1,392 company administrations in 2019.