Business
Q2 2011 Red Flag Alert Report
Q2 2011 Red Flag Alert Report.
About this update from Btg Consulting Plc
[{"type":"text","content":"\n \nRNS Number : 9217K Begbies Traynor Group PLC 25 July 2011 \n \n\n25 July 2011\nQ2 2011 Red Flag Alert Report\n12% Quarter on Quarter Increase in UK Business 'Critical' Financial Problems\nA fall in 'significant' financial problems indicate vulnerable businesses are making the transition from 'significant' to 'critical' problems \nKey findings from the Q2 2011 Red Flag Alert Report:\n· A 12% increase in businesses facing 'critical' financial problems when compared to last quarter \n· A total of 5,179 companies facing 'critical' problems in Q2 2011, representing liabilities of almost £60 billion\n· A 48% quarter on quarter fall in the amount of 'significant' financial problems across all sectors, indicative of:\no Many distressed companies making the transition from 'significant' to 'critical' financial problems\no Seasonal factors: 'significant' problems are materially higher in Q1 because of the volume of overdue accounts due to be filed by 31 December\no However year on year \"significant\" problems are relatively unchanged at 94,015 (+1%)\n· Substantial variation in sector performance with an improvement in year on year critical problems in Utilities (- 36%), Print and Packaging (- 37%) and Other (Non Food) Manufacturing (- 13%)\n· Worsening outlook for sectors dependent on discretionary spending with the following sectors experiencing a rise in quarter on quarter 'critical' distress\no Travel & Tourism: + 31%\no Hotels & Accommodation: + 47%\no General Retailing: +17%\n· The Property Services sector shows no sign of improvement with critical distress up by 42% quarter on quarter\n· A 41% quarter on quarter rise in critical problems in the Haulage and Logistics sector reflect the impact of rising fuel prices.\n· Food and Beverage Manufacturing figures demonstrate a 24% year on year increase in 'critical' problems - the first real increase in this sector.\n \nRed Flag Alert, which monitors a series of indicators of company distress, shows a 12% increase to 5,179 companies which experienced 'critical' financial distress in Q2 2011 compared to 4,620 companies in Q1 2011.\n \...