Hayley Watson – a director at insolvency specialists McTear Williams & Wood – said there are some green shoots of recovery – but that was against a backdrop of more firms considering the viability of their businesses.
A sharp rise in the number of start-ups in East Anglia should give the Suffolk economy a much-needed boost, said Ms Watson, who chairs insolvency body R3 Eastern.
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However, she advised caution as companies head into the summer months as latest figures showed a mixed picture for the region’s economy.
Monthly analysis of regional start-up data from business intelligence provider Creditsafe indicates there were 8,218 businesses set up in East Anglia in March – up nearly 18% compared to the previous month.
It is also the highest monthly number of start-ups the region has seen since April of last year.
But the data also shows a 24% rise in insolvency-related activity in East Anglia – including liquidator and administrator appointments as well as creditors’ meetings.
The number of East Anglian companies with late payments on their books has also risen – and stands at 64,389 for the month of March.
“It’s encouraging to see some green shoots of recovery starting to emerge, particularly as we are currently facing so much economic uncertainty,” said Ms Watson.
“It is important, though, to see everything in context as the economy remains hugely challenging, not least with this month’s introduction of National Insurance and National Minimum Wage rises.
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“As a result, enquiries for restructuring and insolvency support are otherwise, is to seek professional help and to do it as soon as possible.
“R3’s advice to any directors worried about the viability of their company, start-up or otherwise, is to seek professional help and to do it as soon as possible.
“Many R3 Eastern members offer a free initial consultation to those who wish to explore their options.”
