Business
Latest Red Flag Alert Report for Q4 15
Latest Red Flag Alert Report for Q4 15.
About this update from Btg Consulting Plc
[{"type":"text","content":"\n \nRNS Number : 8080L Begbies Traynor Group PLC 14 January 2016 \n \n\n14 January 2016\n \n\n \nUK businesses end year in a challenging financial state as a difficult 2016 looms\n \nc.270,000 UK businesses suffered 'Significant' financial distress in Q4 2015 - up 17% year-on-year \n \nNew data reveals that UK companies are bracing themselves for a difficult 2016, after finishing 2015 in a challenging financial state, warns Begbies Traynor, the UK's leading independent insolvency firm. \nAccording to Begbies Traynor's Red Flag Alert research for Q4 2015, which monitors the financial health of UK companies, 268,898 UK companies closed the year suffering 'Significant' financial distress; a 17% increase compared to the same period in the prior year (Q4 2014: 229,232 companies) and the most marked annual rise in distress since Q2 2014. \nThe research reveals that all sectors of the economy saw an increase in financial distress over the past 12 months. Worryingly, the worst performing sectors were those that are most influential to the UK's economic growth, with 58,955 Services companies, 12,418 Manufacturers, 41,373 Consumer businesses and 50,122 Construction & Real Estate firms now experiencing 'Significant' financial distress, up 19%, 18%, 18% and 17% respectively year on year.\nBegbies Traynor's analysis chimes with George Osborne's warning last week that Britain faces a \"dangerous cocktail\" of global risks that could place the UK's economic recovery in danger, adding that the country needs to be \"shaken\" out of its complacency.\nJulie Palmer, Partner at Begbies Traynor, says:\n\"Despite an improving economy, 2015 showed no shortage of challenges for UK businesses, with a slowdown in China and collapsing oil and commodity prices leading to stock market turmoil during the second half of the year. At the same time, manufacturing weakened significantly as a result of continued sluggish growth in Europe, while labour shortages and building materials inflation continued to plague the construction sector.\n\"With so many companies beginning the New Year in an unfavourable financial state and even the Chancellor predicting black clouds on the horizon, 2016 looks set to be another challenging twelve months for UK corporates.\"\nRic Traynor, Executive Chairman at Begbies Traynor says: \n\"Strug...