Businesses urged to plan ahead by expert

NEW insolvency figures have sparked a warning for businesses and individuals in Portsmouth.

R3, the trade body for restructuring and insolvency professionals, says that ‘now is the time’ to plan ahead for the anticipated phasing-out of government support as the Covid crisis eases.

The plea comes after new statistics from the Insolvency Service revealed significant decreases in February for England Wales.

Corporate insolvencies fell by nine per cent to 686 in February 2021 compared to January’s figure of 754.

Personal insolvencies fell by 18 per cent to 6,816 in February 2021 compared to January’s figure of 8,321.

Garry Lee, chair of the R3 Southern and Thames Valley region which covers Portsmouth, said the statistics failed to reflect the severity of the pandemic’s impact.

He said: ‘The fall in corporate insolvency numbers has been driven by a reduction in all corporate insolvency processes. However, it’s worth noting that both bankruptcies and Debt Relief Orders – which may be indicators of more severe debt levels than IVAs – rose by 14 per cent compared with the previous month.’

MORE than 200 new breweries opened in 2020 despite the coronavirus pandemic hitting the sector, according to research.

Accountancy firm UHY Hacker Young said that

216 new breweries opened last year, bringing the total number of breweries to 3,018, even though pubs were shut for almost half of all trading days.

The seven per cent increase in the number of beer makers is a positive sign for the sector, according to James Simmonds, a partner at UHY Hacker Young.

He said: ‘People's appetite for trying new beers from different breweries has contributed to the long-term rise in new breweries being set up.

‘The sector hasn't fallen into the trap of discounting.

'There is also the prospect of an exit to a major brewer if you can build a valuable brand.'

It research comes as Budweiser announces that it plans to invest more than £115m in its two major UK breweries to improve their infrastructure and create jobs.

The beer firm will install new equipment at its South Wales and Lancashire sites.

Paula Lindenberg, president of the Budweiser Brewing Group UK&I, said: ‘Like many in the UK, we are focussed on a strong recovery of our economy, our communities and our country.

‘By investing in our breweries with new roles and new technology to increase capacity, we’re ensuring that we can brew and deliver great beers for many years to come.

‘We know the beer industry is hugely valuable to the UK economy.’