OVER 500,000+ UK COMPANIES IN FINANCIAL DISTRESS
A recent survey from Begbies Traynor reported by redflagalert has discovered:
- 509,000 UK companies are in significant financial distress—the highest number ever measured by research.
- The coronavirus lockdown has seen the largest quarterly increase in the number of businesses in significant distress since the end of 2017, growing by 15,000 companies.
- This figure is expected to increase throughout Q2 as COVID-19 restrictions continue.
- The number of critically distressed businesses increased by 10% in the last quarter alone.
Figures show a 3% quarterly increase in the number of companies that are unable to meet their debts. That’s 15,000 businesses, representing the largest increase since the end of 2017.
Companies with less than 250 employees are particularly vulnerable at this time as many have struggled to access government support schemes.
There has been a significant increase in businesses experiencing critical distress,2,289 companies are now in this category. Between Q4 2019 and Q1 2020, the increases in certain sectors have been dramatic, including bars, restaurants and property.
To find out more about which sectors have been affected, visit our website here.
We are here to help
Our team of experienced and qualified advisors are still in place to provide advice, support and provide recovery action where require.
At this very sensitive and worrying time for all we are keen to ensure that you have all the facts and support you need to make the very best decision for your business and your clients.