July sees further drop in failures

COMPANY failures continue to show a marked decline from last year's levels, with just 239 receivership and administration appointments last month, compared with 470 in July of last year, according to figures from Touche Ross, the accountants.

The reduction recorded by the London and Edinburgh Gazettes is 'indicative of the haul out of recession and also suggests that companies are not yet suffering from cash-flow problems, which are a common feature of recovery', the firm's head of corporate recovery, Christopher Morris, said.

Of the regions, London and the South-east saw a particular improvement, with 89 appointments last month, compared with a monthly average of 180 in 1992. Progress has been slower in the North-west, Yorkshire and Humberside, where there have been a total of 66 appointments against a monthly average of 87 last year.

For the second consecutive month, Scotland has reported almost no appointments - three last month after four in June, against last year's monthly rate of 18 to 20. 'This is unexpected because historically the trends in Scotland have followed some nine or 12 months behind the South and that region was significantly later entering recession,' Mr Morris said.

Property and construction saw only 37 appointments, compared with an average of 81 last year. But, while most industry sectors show a steady downward trend, hotel and catering are improving more slowly. There were 21 appointments in the sector, compared with 1992's average of 27.

(Graph omitted)