The number of company closures in Lincoln reached a record high in the first quarter of the year, according to a report by company formation agents Duport Associates.
Between January and March, 2014, 299 companies were dissolved in Lincoln – more than any other first quarter on record, and a 118% rise on the year previous.
In the first quarter of 2014, Lincoln formed 0.3% of all UK companies.
The Duport Business Confidence Report revealed that the number of company closures also fell by 18% over the quarter, leading to an overall drop in net company growth.
A total of 388 companies were registered in Lincoln during the first quarter of 2014 – a decease of 9.6% against the same period in the previous year.
The news follows a record overall year in 2013 for both company formation and net company growth.
Managing Director of Duport.co.uk, Peter Valaitis, commented: “Although the figures in our report look like bad news for Lincoln, it is actually perfectly natural for there to be an increase in closures after a record year for company formation.
“Sadly, not all new companies will make it past their first year of trading, and this is reflected in our report on Lincoln.”
The report also highlighted that Lincoln business directors are older than the UK average.
Some 4.2% of directors in Lincoln were under the age of 25, compared with the UK average of 4.6%.
While the UK average percentage of directors over 65 is 3.5%, Lincoln scored 4.1%.