Feeds

Misery ending? UK reseller insolvencies may have bottomed out

Dead firms were soft and weak, only the hard survive

Secure remote control for conventional and virtual desktops

Insolvency rates in the UK channel were back to pre-recession levels in Q2, according to official stats from credit reference agency Graydon UK.

The picture is remarkably different to a year ago when reseller failures reached a nine-year high with 99 firms hitting the wall, a pattern that continued until the end of Q1 2012 when 89 firms collapsed.

However, The Channel can reveal that just 64 dealers went under in the most recently completed quarter, bucking forecasts of doom, down 35 per cent year-on-year and 28 per cent down on the last quarter.

"The figures were a bit of a surprise," said Alan Norton, head of intelligence at Graydon UK, who revealed 38 firms went into voluntary liquidation, four faced compulsory liquidation and 22 called in the receivers.

He said a couple additional quarters of data is required before Graydon can say with a high degree of certainty that the worst is over, lest we forget that "market conditions are set to be challenging for some time".

"But part of the Darwinian principle here - survival of the fittest - is that many companies have been through tough times, the weaker ones fell by the wayside and the most resilient remain," he said.

Only one fifth of resellers surveyed across Europe by Canalys indicated business declined in 2011 but around 60 per cent claimed sales were up by five per cent more more.

Alastair Edwards, Canalys principal analyst, claimed: "The channel is in rude heath".

He said resellers are benefiting from the decline in large outsourcing deals as private and public sector customers carve up contracts and send out managed service contracts to smaller suppliers.

Then of course there is the Apple impact, with many investing in skills to help customers deploy iPads and iMacs. And while some SMEs are assessing the way they consume tech, the on-premise model is very substantial.

"Resellers are facing tough times and the economy is challenging in different segments and countries - but our view is that there is still growth for the channel," said Edwards. ®

Build a business case: developing custom apps

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.