The leading corporate financial health monitoring specialist, Company Watch has published its latest Newsletter. This showcases our joint research on two of the hottest topics in the business and lifestyle sectors. These are the worrying state of residential care home finances in the UK and the poor performance of the Administration procedure as a business rescue tool.

Administration Outcomes

In this issue, we showcase some key research we co-produced in October with Opus Restructuring, an advisory, restructuring and insolvency firm. We looked into the effectiveness of company administrations, the UK’s flagship business rescue procedure, and found some worrying results……

Working with Opus, we reviewed the outcomes of 4,581 Administration cases in England & Wales which started in the past five years. Almost 2,000 of the Administrations are still in progress.

Care Home Finances

Later in this newsletter we return to a regular research topic for Company Watch: the largely parlous health of the UK care home sector. We first looked at the state of this important market sector in August 2013 and have tracked it regularly ever since….. 

Using our data, Opus reviewed the finances of 6,178 care home operators, who collectively run 96% of the UK’s residential care homes (caring for around 300,000 elderly and vulnerable residents).

We found that more than one in four (1,718) of operators are at risk of failure, meaning that around 6,000 care homes could need a financial rescue within the next three years if their closure is to be avoided. 

To read the full Company Watch Newsletter, click on the link below:

http://companywatch.cmail20.com/t/ViewEmail/t/00628056D791BDFF/AD2953AC4CEFF793E663AB054A538FBA