It was down to on-going difficulties in the economy and the funding crisis in the banking sector.
Mr Kelly said: “It is a reflection of the fact that in 12 months we have gone from a surplus to a dearth of funds.
“I have never before seen a swing like it in such a short period of time.”
Previously, struggling companies had been able to get extra financial support relatively easily. “Now even a good business which hits a bit of a problem finds trying to get funds almost impossible.”
As to the next 12 months, Mr Kelly warned: “It is going to be very challenging. Until the money supply begins to ease there are going to be continuing difficulties and an increase in the number of insolvencies.”
Mark is a partner in the Birmingham and Cheltenham offices. He is a Chartered Certified Accountant and also a Licensed Insolvency Practitioner. He joined the company in 2005 and has over 10 years restructuring and insolvency experience. He advises directors and management teams across a wide range of sectors.