Pubs are holding their own – just!

05/11/2010

The Insolvency Statistics published today by the Insolvency Service show a fall in the number of insolvencies in the pubs, clubs and bars sector.

Commenting on the figures, Mark Wilson, Partner at Baker Tilly Restructuring and Recovery LLP, says:

“This quarter’s insolvency figures in the licensed trade show a slight decline from Q2, yet are broadly half the level of the corresponding quarter last year. We expect, however, licensed sector insolvencies to rise again in 2011.

“Joint Company Watch/Baker Tilly research shows that in one in every three licensed operators saw a 10% or more fall in operating profit in their latest filed accounts. We have also seen a modest fall in the industry’s overall financial health.

“The public sector cuts have already had a negative impact on consumer confidence and there is early evidence of spending being reigned in. We expect that licensees will trade well to the end of 2010 but it will be in the first quarter of 2011 when pressure may mount on the industry when they are hit with the double whammy of a traditionally quiet trading period and the increase in VAT.”

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