Drop in numbers of UK companies being launched

New enterprises down 16 per cent over the year to April, says Jordans

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The number of new businesses created in Britain was 70,000 fewer this financial year than in the previous 12 months – a fall of 16 per cent.

Latest figures from corporate services company Jordans show that many of the major gains of 2006 have not been maintained.

They suggest that the slow down started around September and coincided with the first effects of the credit squeeze.

The North West of England experienced the largest percentage fall of 46 per cent year on year followed by the South East of England – outside Greater London – where the total was 26 per cent less. The drop also topped 20 per cent in Yorkshire and Humberside.

Other regions fared better but still saw a fall except for Scotland, where there was no change, and the North of England, where the number of new companies formed went up by 2 per cent.

Paul Townsend, Director of Jordans Corporate Services, said there was a mixed picture for 2007-08 compared to the almost universal rises of the previous year when a 20 per cent rise took the total to almost 470,000. Much of the increase that year was due to the change in the Government’s tax treatment of managed service companies, many of whom formed private limited companies instead.

Paul Townsend said that although the latest total was down, there were still 374,021 new enterprises formed at an average of more than 31,000 every month.

“It is interesting that when the figures are broken down they show that in most areas there was no major difference between the monthly average of companies formed in the first nine months of the year, and the average in the last quarter, when we were being bombarded by negative data and comment,” he said.

“However, the trend in average monthly formations has been downwards, flattening out in the last quarter.

“There is obviously more caution amongst entrepreneurs but at this stage there are still considerable numbers of people willing to take a chance and form their own company.”

ENDS        23rd June 2008

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk

Note to editors
•    Jordans Limited has been providing professional business services for over 140 years. These services now include company formations and administration in the UK and internationally, business information and conveyancing support. 
•    Jordans have been offering company formations for all of its 140 years.  As well as forming all types of companies, they provide software – Incorporator - for clients who undertake volume formations and PCSec, a software package which helps company secretaries administer their companies.
•    Jordans have been providing international corporate services for many years. With offices in Bristol, London and five offshore locations (Jersey, Gibraltar, Cyprus, British Virgin Islands and Seychelles) Jordans Ltd is able to provide full UK and international support for their clients.  International services include setting up UK or offshore companies and trusts, company management and professional trusteeship.
•    Jordans’ business information services include company searches, data sales (either large or small batches of data on companies and directors) and three branded products – JordanWatch, a database of information and reports on companies, NameGuard, a company name-watching service, and KYC (Know Your Client) Reports used for anti-money laundering information. 
•    Jordans Limited has been in the property search business for 30 years and has been offering online search ordering for several years.  Their service spans more than 70 different searches, ranging from all the standard searches, including local authority, drainage and environmental, to the many special requirements for individual properties and localities, such as searches for mining, transport and chancel repair.
•    Jordans has over 100 years of conveyancing experience and is one of only three National Land Information Search channels providing local authority searches electronically. The company offers a comprehensive HIPs package, delivering all elements of the pack efficiently and within the quickest possible time.
•    Jordans are committed to providing a first-class service and enjoy a reputation for quality, reliability and professionalism.