Business
Latest Red Flag Alert Report for Q4 2019
Latest Red Flag Alert Report for Q4 2019.
About this update from Btg Consulting Plc
[{"type":"text","content":"\n \nRNS Number : 9181A Begbies Traynor Group PLC 27 January 2020 \n\n \n \nAlmost half a million businesses in significant financial distress \n \n· Number of businesses in significant distress now 494,000 - the highest number measured by the Red Flag Alert research\n· Distress highest amongst recently formed companies - those registered since 2014\n· Numbers of real estate and property businesses in significant distress has risen by 13% in a year to 53,000\n· Numbers of businesses in significant distress rises 81% since the start of 2016\n \n \nNew research from Begbies Traynor, the UK's leading independent insolvency firm, reveals the number of businesses in significant1 financial distress has risen to 494,000 - the highest number recorded by this research, with the real estate and property, support services, construction and retail the sectors particularly badly affected.\n \nThe latest Red Flag Alert data for Q4 2019 found there were large numbers of UK businesses experiencing significant financial distress at the end of December 2019. A considerable number of these companies were formed after 2014, demonstrating that younger businesses are the most vulnerable to failure. With this continued increase in significant distress there is a danger that in 2020, this distress figure could exceed 500,000 companies.\n \nAcross the 22 sectors monitored by the Red Flag Alert research, 15 sectors have witnessed increases in significant financial between the third and fourth quarter of 2019, compared to 13 out of the 22 sectors between Q4 2018 and Q4 2019, indicating that the latter quarter of 2019 has witnessed the broadest rise in financial distress.\n \nJulie Palmer, Partner at Begbies Traynor, said: \n \n\"Businesses and the UK economy as a whole will want to avoid a repeat performance of 2019, where distress increased to record levels on the back of ongoing uncertainty around Brexit. These figures clearly demonstrate the impact of this indecision, and with political certainty and a clear Brexit path, UK businesses should, at last, be able to plan for 2020 with a greater sense of clarity.\n \nHowever the macro economic climate is complicated and we are se...