INSOLVENCY RATES RISE WITH THE COST OF FUEL
Irrefutable evidence that rising fuel prices are directly linked to company failures are shown in new analysis from one of the UK's leading insolvency firms. More than three out of four instructions currently received by SFP for businesses within the transport sector cite fuel as one of the biggest contributors to their company's downfall. And the problem will only get worse according to Simon Plant, a Partner at SFP: "Businesses in the transport and haulage sectors are taking a huge hit from rising fuel costs,” he says. "With petrol now over £1.35 a litre (on average), those businesses with narrow profit margins are being squeezed harder than ever, and some to the point of insolvency.
"A transporter or haulier simply cannot avoid being affected, unless perhaps they have managed to stockpile large quantities of fuel which had been purchased when rates were low,” he adds. Recent failures include:
• Yellow Star Travel – Suffolk-based bus and coach company
• FG Foster Haulage – Staffordshire road haulage company
• Antrac Ltd – a skip hire company with a £2million turnover
"Whilst it is unlikely that such news would be welcomed, if clearly communicated and explained more often than not loyal customers will understand and continue to support the company.”