0800 9700539
Show Menu

Business distress level falls to lowest on record

According to the latest research from R3, only 17% of businesses have reported a ‘key distress indicator’, compared to 28% last September. 

Indicators include a fall in sales, having to make redundancies, frequent use of maximum overdraft and decreasing market share. 

In March 2012 when these records began, 64% of businesses showed signs of distress. This is a huge decrease showing businesses are becoming more stable and improving their finances. Less and less businesses are becoming insolvent, a fact reflected in the quarterly insolvency statistics released by the Insolvency Service. 

R3 President, Philip Sykes, commented “The level of businesses in distress has plummeted since our survey began in 2012. This isn’t surprising given the current state of the economy. There has been a reasonable level of growth in recent years and the record low interest rates have facilitated high liquidity.”

He continued, “The long-running survey of UK businesses also found that growth was at a new record high. 69% of businesses reported at least one indicator of growth, a marginal increase from the previous high (68%) in April 2015. 

“While it’s positive to see the proportion of those experiencing at least one indicator is at an all-time high, the results suggest that fewer firms are seeing multiple signs of growth. Many businesses underwent a period of rapid growth in recent years, but now have started to reach a plateau.”

Overall, very positive news for SMEs and larger companies. 

0 Comments

Post a Comment

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.


No Very





Captcha Image



DISCLAIMER

The information contained in this Blog (the "Blog") is intended solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this Blog. Accordingly, the information on this Blog is provided with the understanding that the authors and publishers are not herein engaged in rendering professional advice or services. As such, it should not be used as a substitute for consultation with professional and competent advisers. Before making any decision or taking any action, you should consult a professional adviser. 

While we have made every attempt to ensure that the information contained in this Blog has been obtained from reliable sources, KSA Group is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this Blog is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Nothing herein shall to any extent substitute for the independent investigations and the sound technical and business judgment of the reader. In no event will KSA Group, or its directors, employees or agents, be liable to you or anyone else for any decision made or action taken in reliance on the information in this Blog or for any consequential, special or similar damages, even if advised of the possibility of such damages. 

Links to Related Internet Sites 

Certain links in this Blog connect to third party web sites. KSA Group does not accept any responsibility for, nor makes any representations as to the accuracy of, any content in such third party web sites. 

Third Party Comments 

Third parties may submit comments for publication on the Blog. Any such comments are submitted on the basis that KSA Group will review and may edit such comments, and that not all submissions will be published. Any third party comments published on the Blog (whether edited or not) are third party information for which KSA Group takes no responsibility and disclaims all liability, and the above disclaimer applies to any such third party comments. 

Privacy Statement 

If and to the extent that you submit any personal data (such as your name and email address) to KSA Group through this Blog, including by email to the Blog manager, KSA Group (as data controller) confirms that it will only use any such personal data for the purposes for which you have provided such data. 

Copyright 

The copyright in the text, podcasts, PowerPoint slides, layout and any other materials on this Blog (other than any third party comments) is owned by KSA Group Ltd. All rights are reserved. 
If you wish to use or copy any of the text or other materials on this Blog (or any extracts from the same), you must first contact KSA Group for copyright permission in relation to the proposed use. In addition, any use of text or other materials on this Blog (or any extracts from the same) in published materials must identify the KSA Group materials involved and reference the KSA Group author's name. 

The browser you are using is Explorer 8 and this site is not compatible with this version. Please upgrade or switch, which is free, for a more secure and better browsing experience.Close