Nursery insolvencies on the increase

Fri, 02 Sep 2016 | BUSINESS NEWS

The number of UK nurseries becoming insolvent has increased by a staggering 80 per cent in the past year, according to research from accountancy firm Moore Stephens.

Some 29 nurseries became insolvent in the 12 months to the end of March 2016, up from 16 the year before. Moore Stephens claims the increase could be attributable to the national living wage, which has set pay for over-25s to £7.20 an hour.

The result of the rise in staffing costs is expected to be an increase in the price of a nursery place for parents looking for childcare. Insolvency News reported that staff ratios for nurseries are already set at very high levels, making staffing a major cost factor for those running childcare establishments.

Moore Stephens partner Mike Finch explained: “There is a considerable burden on nurseries which only serves to further hit their margins. The considerable time and staff costs that are required to meet these obligations are putting more financial strain on nurseries across the UK.”

As a result of the increase in insolvent nurseries, there may be acquisition opportunities for those looking to grab a bargain in the childcare sector.

Businesses in administration


Share this article



Latest Businesses for Sale

Pharmacy
Cambridgeshire, UK Wide

Long established community pharmacy. First time on the market in 30 years. Now occupying exemplary new purpose built accommodation. Standard hours. Offers invited.

Asking Price: Offers Invited
Turnover: £885,000

LEASEHOLD


Creative Consultancy & Interior Design Solutions
UK Wide

Works closely with clients to produce interior design solutions for educational institutions, which could be marketed to more sectors.Additionally offers an array of creative media, including videos,presentations, websites, branding and full direct m...

Asking Price: Offers Invited
Turnover: £873,000

RELOCATABLE


Health Centre Pharmacy
Devon, UK Wide

Unopposed health centre pharmacy. Semi-rural location. In receipt of Pharmacy Access Scheme payments. Offers invited.

Asking Price: Offers Invited
Turnover: £845,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
22
 
Jan
 

Chelmsford warehouse management firm bought by software provider | BUSINESS SALE

Chelmsford-based warehouse management solutions provider Min...

 
21
 
Jan
 

MBO at Newcastle market research company | MBO/MBI

Newcastle-based market research company Explain Market Resea...

 
20
 
Jan
 

Target Healthcare embarks on acquisition spree | BUSINESS SALE

Target Healthcare has completed the acquisitions of a develo...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
27
 
Nov
 

Accountancy and business advisory: the ultimate merger | MERGER

Advanced merger discussions are underway between accountancy...

 
23
 
Dec
 

Benjoy Nutrition in administration and seeking a buyer | ADMINISTRATION

Benjoy Nutrition, the supplier of children’s healthy s...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources