Administrations crept up in the final month of 2021.
December saw 20 construction-related firms enter administration, according to exclusive data from Creditsafe. This was up marginally on the 19 reported in November, but below the 23 seen in October, which was the highest recorded in a single month last year
Administrations have remained below historic norms, which has been attributed to various forms of financial support introduced by the government in late March 2020 in response to the pandemic. In that month, 34 firms went into administration.
Overall insolvencies have been rising since September, when the furlough scheme ended. Data from the insolvency service, which includes liquidations as well as administrations, showed 260 construction firms registered as insolvent in October. This is compared to 112 in October 2020, when various forms of financial support were in place. In October 2019, before the pandemic, the number of insolvencies was 279.
The rise in liquidations reflects the number of companies that have run out of options, according to RSM UK Restructuring…
