Atradius response to Q2 insolvency statistics

(Cardiff 06.08.2010)

 Marc Henstridge, Head of Risk, Atradius UK & Ireland said:

“Though up slightly on the previous quarter – possibly due to the post Christmas trading boost inflating figures for Q1,and a subsequent lull in Q2 as confidence dipped around the general election -  the general downward trend in company insolvencies, down 19.1% on the same period last year, is encouraging. This reflects a resilience borne of historically low interest rates, quantitative easing and more considered measures than has historically been the case in previous downturns. In addition, the decision by many businesses to limit redundancies through reduced pay or hours has paid off - businesses have realised that trade must go on and have continued to do just that, prudently, taking the appropriate actions to mitigate cash flow risks.

But this doesn’t mean we are out of the woods. Outside our domestic economy, the storm continues in many formerly “safe” OECD economies - traditionally the mainstay of the UK export industry – and further afield. So whilst it’s pleasing to see things taking a general turn for the better, it is still more critical than ever that businesses are careful in their trading decisions and that they continue to manage their cash flow and credit risks with great prudence.”

Ends
About Atradius:  
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence through 160 offices in 42 countries. Atradius has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily. Its products and services aim to reduce its customers’ exposure to buyers who fail to pay for the products and services they buy. With total income of more than EUR 1.7 billion and a 31% share of the global trade credit insurance market, its products help protect companies throughout the world from payment risks associated with selling products and services on credit.


Further information:
Atradius Corporate Communications  
Jo Aaron
Tel: 02920 824873 / 07768 233338
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 
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