UK’s leading firm of insolvency practitioners, Begbies Traynor, recently released business health statistics through affiliate brand, Real Business Rescue, analysing business distress data for Q1. The data analyses the lifeline of businesses in distress through trendspotting, including identifying hotspots across the country and sectors which show greater vulnerability.
The South West region ranks second for showing the highest levels of distress according to a regional breakdown, standing at 13.46% and topped by Wales which stands at 13.93%. Breaking down the data for the South West, 20% of these businesses were in distress after four years of trading, translating into 9459 businesses. The data shows that younger businesses are more likely to experience financial strain in comparison to legacy businesses as they pose a greater risk.
The data released covers the timeframe from January 1, 2020, to March 31, 2020, falling sharply before the lockdown measures were announced in an attempt to control the spread of Covid-19 which has had a momentous impact on the UK economy. The published figures do not take into account the effect of the virus.
Since the Covid-19 outbreak, many sectors have been forced to come to a standstill, including bars, restaurants, sports and health clubs to help mitigate the spread of the virus. As a result, many have been forced to turn to emergency funding to fill the income gap or adapt to offering a collection/delivery only service to make up for the loss of income.
The top ten sectors in distress as of April 2020 were:
Neil Vinnicombe, partner at Begbies Traynor Taunton, said: “Since the lockdown has been enforced, we have had an influx of calls from struggling businesses across the region, seeking help to stabilise their business and access finance solutions.
“Local, independent businesses, along with nationally recognised names are the beating heart of the UK economy so it’s vital to ensure that we assist them, in addition to the support offered by the government.
“We’re offering our vast experience of helping business owners navigate the tricky landscape of insolvency when facing a cash crisis.
“We have advised thousands of businesses over the last 30 years and have built a reputation amongst the professional business services community across the country and in Somerset as a trusted specialist adviser.”
Neil Vinnicombe can be contacted on 01823 726271.
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