IBRT and Tenon Recovery make predictions for 2010 at R3
industry meeting hosted in Southampton
On Thursday 3 December the firm's Insolvency and Business
Recovery (IBR) team welcomed the Association of Business Recovery
Professionals (R3) Southern Region for their quarterly meeting and
AGM in the auditorium at our New Kings Court, Southampton
office. The meeting was hosted by Mike Pavitt and Melia Hirst
from IBRT alongside Nigel Fox and David Green from Tenon
Recovery.
The theme of the meeting was 'Back to the future', entailing a
themed, interactive review of how the UK entered recession, what
impact the recession has already had across various sectors, and
where we anticipate the most likely problem zones, policy changes
and legal developments will fall over the coming 12 months.
Before the session, we issued a questionnaire to R3 members
setting out 10 detailed questions, the results of which Mike
presented to the meeting.
Some of the key conclusions from the session were:
- that the UK will see a slow return to growth during 2010 but
will not enter a sustainable recovery phase until first quarter of
2011
- that corporate insolvencies will continue to rise long after
the recession has formally ended
- that the worst hit sectors nationally are likely to be
airlines, hotels, property, automotive, professional services and
newspaper publishing
- that the worst hit sectors / sub-sectors in the South are
likely to be retail, leisure / entertainment and construction, in
that order
- that UK banks will, by and large, return to their pre-recession
lending practices by 2015.
Mike Pavitt, regional head of Insolvency and Business
Recovery and committee member of R3, commented: "The data
produced by Tenon for the presentation was excellent and the
overall presentation exceptionally well received. Government
policies and HMRC 'time to pay' arrangements have shielded us from
some of the worst effects of the recession to date but it is
undeniable that, even assuming quarterly GDP change returns to
positive figures, 2010 will see a further increase in insolvencies
across the board. It is our task as professional advisors to ensure
that we are pro-active on behalf of our clients to ensure that we
minimise the adverse effects and capitalise on the
opportunities."
