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Begbies Traynor Red Flag Alert research: Q1 2016
Begbies Traynor Red Flag Alert research: Q1 2016.
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[{"type":"text","content":"\n \nRNS Number : 2807V Begbies Traynor Group PLC 15 April 2016 \n\n \n15 April 2016\n \nBrexit could spell disaster for struggling UK exporters, despite boost from weak Pound\n \nc.21,000 UK manufacturers which rely heavily on exports could be tipped over the edge in a Brexit scenario\nDespite UK exporters experiencing a much needed boost in recent weeks thanks to the ongoing Sterling weakness, the UK's largest exporting industries continue to suffer from rising levels of financial distress which doesn't bode well for the sector in the event of a potential Brexit, warns Begbies Traynor, the UK's leading independent insolvency firm.\n \nBegbies Traynor's Red Flag Alert research for Q1 2016, which monitors the financial health of UK companies, reveals that 21,061 UK manufacturers, many of which rely heavily on exporting, ended the first quarter of 2016 in a state of 'Significant' financial distress - 20% higher than the equivalent period last year (Q1 2015: 17,545) - despite the weak Pound making UK exports more attractive to international customers. \n \nOf the UK manufacturing sectors covered by the research, the number of food & beverages production companies experiencing 'Significant' distress rose the fastest, at 29%, followed by a 21% increase in the broader manufacturing sector and a 17% increase in the automotive sector.\n \nMeanwhile the Red Flag research shows that the UK's financial services sector, which has significant exposure to the European financial markets and investment community, is in a substantially weaker financial position compared to the same stage last year. The number of UK financial services businesses suffering 'Significant' financial distress is up nearly a quarter (23%) at the end of Q1 2016 to 5,391 companies (Q1 2015: 4,383), ahead of a potential Brexit to which the sector has been much opposed.\n \nWith growing uncertainty surrounding the outcome of the Referendum vote in June, combined with concerns around what any future trade agreements with Europe will look like in the event of a Brexit, difficult questions have been raised over how a Brexit vote could impact the UK's already struggling exporters and financial services industry.\n \nJulie Palmer, Partner at Begbies Traynor, says:\n\"Our data shows that the UK's exporting industries are al...