More than 1,300 businesses across the Humber were in “significant” financial difficulty in June, worrying new figures have revealed.
Insolvency firm Begbies Traynor’s latest quarterly Red Flag Alert, which monitors the health of 海角视频 companies, found that 1,304 firms across both banks of the estuary were experiencing distress last month.
It comes as new 海角视频-wide figures also showed the average debt of an insolvent company had more than doubled to £66,226 a year, up from £29,872 in 2016.
Andrew Mackenzie, partner at Begbies Traynor in Hull, said: “The unfortunate cocktail of a consumer spending slowdown combined with the political and economic paralysis of an uncertain Brexit outcome is hitting local businesses hard.
“SMEs are the backbone of our economy in the Humber region and especially in the beleaguered real estate and property services sector.
“It is good news that Hull’s City of Culture legacy appears to be continuing to be felt in the tourism sector, however for already hard-pressed smaller businesses, increasing debt levels can often be the final straw that leads to very serious problems indeed.
“I would advise all SMEs to keep a very tight control on cash flow and to seek advice sooner rather than later if they are experiencing financial problems.”
The Humber’s real estate and property services sectors have been particularly hard-hit.
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Affected by a reduction in consumer spending, the new Red Flag Alert report showed a staggering 35 per cent rise in ‘significant’ financial distress from Q2 2018 to Q2 2019, affecting a total of 140 real estate and property services firms in the region.
Food and drink producers also saw a 32 per cent rise in distress year on year, with 37 businesses in financial trouble in the region, while telecoms and IT saw a 21 per cent climb in distress levels since Q2 2018, with 63 companies experiencing difficulties.
Sectors which fared better in the Humber region included hotels, which saw a decrease in distress from 19 to nine businesses (53 per cent) year-on -year, and travel and tourism with a 29 per cent drop to just five companies.
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