Businesses in the Yorkshire and Humber areas are seeing a 鈥渞ising tide of financial distress鈥, according to an influential business report.
The latest Red Flag Alert report from business recovery specialists Begbies Traynor found that the number of companies in Yorkshire suffering early-stage or 鈥榮ignificant鈥 distress rose 36% on last year, while the number in the Humber area rose 25%.
The company said that high interest rates and supply chain issues remain persistent problems for many firms, despite early signs of the 海角视频 coming out of recession. The increase in distress in Yorkshire was worse than the national average on the measure, which highlights companies seeing deterioration in a number of key financial areas, though the Humber figures were better than many other regions.
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Begbies Traynor said that very severe, or 鈥榗ritical鈥 business distress, which puts companies in imminent danger of insolvency, had risen by 33% in Yorkshire since the first quarter of last year. Companies in the retail and food sectors were badly affected.
Julian Pitts, Begbies Traynor鈥檚 regional managing partner in Yorkshire, said: 鈥淧ersistently high interest rates continue to pile pressure on beleaguered businesses who are struggling with the costs of servicing debts, at a time when reduced consumer demand is exacerbating financial strains.
鈥淭his is compounded by geo-political turmoil and ensuing supply chain disruptions and although economic growth is expected to rally this year, in the current environment we are advising businesses to keep tight control of their finances and seek professional help at the first signs of trouble to avoid problems becoming insurmountable.鈥
Andrew Mackenzie, the company鈥檚 partner in the Humber region, said: 鈥淏eleaguered businesses are struggling in the face of persistently high interest rates, which continue to pile the pressure on. Many firms are seeing the costs of servicing debts escalate."
