Business
Q4 13 Red Flag Alert
Q4 13 Red Flag Alert.
About this update from Btg Consulting Plc
[{"type":"text","content":"\n \nRNS Number : 0435Y Begbies Traynor Group PLC 20 January 2014 \n \n\n \"Feel Good\" Factor Returns as Critical Business Distress Falls for Three Straight Quarters\n \n· Growing consumer debt boosting many sectors\n· Entrepreneurial spirit prevails as new company incorporations at highest ever level\n \nLatest Red Flag Alert Report for Q4 2013\n \nAccording to the latest Begbies Traynor Red Flag Alert for Q4 2013, which monitors the financial health of \"Corporate UK\", levels of 'Critical' financial distress among UK businesses continued to recover during the final quarter of 2013, as improving business confidence drove strong growth across the UK's core services sectors and encouraged growing numbers of entrepreneurs to incorporate new businesses during the past year.\n \nAcross all sectors, UK businesses experiencing 'Critical' financial problems reduced 1% from 2,951 in Q3 2013 to 2,933 in Q4 2013, with the Hotels, Food Retailing and General Retailing sectors experiencing seasonal reductions in 'Critical distress, falling 24%, 22% and 7% respectively, fuelled by Christmas trading as well as increased consumer spending due to improving job security and property prices - adding to a discernable \"feel good\" factor. Also finishing the year in a stronger position were the UK's important services sectors (Financial Services, Professional Services and Support Services), which experienced quarterly reductions in 'Critical' distress of 23%, 21% and 4% respectively.\n \nOn an annual basis, the improvement in 'Critical' distress levels was still more marked, decreasing some 4% compared to 3,044 in Q4 2012, as the vital services sectors again experienced the largest improvements in distress levels, with the Financial Services sector reducing 21%, Professional Services by 12% and Support Services by 11% over the 12 month period. Other industries which closed the year stronger than they started it were Food Retailing, Bars & Restaurants and Automotive which saw annual reductions in 'Critical' distress of 31%, 9% and 7% respectively.\n \nJulie Palmer, Partner at Begbies Traynor, commented: \"Christmas came late for UK retailers in 2013, as consumers more than ever left their festive shopping to the last minute, taking advantage of the growing number...