Fewer companies going bust is usually considered good news – but not for Aim-listed Begbies Traynor. The insolvency specialist on Monday issued a profits warning after more companies than it hoped for managed to keep trading – rather than go to the wall. It was not quite what Ric Traynor, executive chairman, foresaw in July, when he was quoted as saying: “The undertaker is polishing off the hearse again. Someone’s got to bury the bodies.” On Monday he admitted: “There’s been a milder economic winter than everyone predicted and therefore less corporate deaths.”
By Alistair Osborne
By James Hurley 7:24PM GMT 01 Nov 2010
HMRC’s remissions and write-offs have risen by 40pc over the last year, from £4.6bn to £6.4bn. Steven Law, president of R3, the insolvency trade body, said there had been “a tightening of the screw” on companies that owe money to the Treasury.
“Our members are seeing a tougher line being adopted, especially with companies that have had two or three chances to repay [outstanding taxes] and haven’t been able to comply with the terms. HMRC is starting to lose patience.”
Roy Maugham, partner at accountancy firm UHY Hacker Young said: “The Treasury is very hungry for cash at the moment. Our concern is this is going to lead to much more aggressive debt collection tactics.”
