Tuesday, June 08, 2010 9:57:37 AM
Begbies Traynor, the corporate insolvency specialist, continues to expect UK companies going bust because of the recession. "There are lots of zombie businesses, which are effectively the walking dead and have no chance of actually coming back to life," said Ric Traynor, executive chairman. Most of the pain from the recession had yet to be felt, he added. Nevertheless, the number of corporate insolvencies in Begbies' second half to April 30 was relatively flat compared with the first half, the company said in its full-year trading update. As a result Shore Capital, its broker, cut its forecast for pre-tax profits excluding exceptionals in the year to April 2011 from £13.3m to £10.9m.