According to the latest R3 report, the number of businesses under financial pressure has fallen to a record low.
66% of Midlands businesses are showing no signs of insolvency; a huge increase from March 2012 figures where just 23% were in the same position.
It’s no surprise that 67% of Midlands’ businesses demonstrated one in five signs of growth, for example a rise in sales or expansion of the business. Together with the drop in insolvent businesses, this is a promising time for businesses based in the region.
Pleased with the encouraging figures, Richard Philpott, Chairman of R3 Midlands and partner at KPMG, stresses there is still a way to go for some businesses: “ the path to full recovery continues to be littered with obstacles, not least a possible personal debt ‘bubble' and a potential rise in interest rates”. A third of businesses in the region are struggling and if interest rates rise next year, these businesses may be pushed to the brink.
It’s important to review your business now if you’re worried about the impact of rising interest rates. If you’re struggling with cashflow, revenue is down or you’re falling behind in tax payments, our regional managers in Birmingham are on call to help. Visit www.companyrescuebirmingham.co.uk for more information and contact details.