Business
Q4 2010 Red Flag Alert
Q4 2010 Red Flag Alert.
About this update from Btg Consulting Plc
[{"type":"text","content":"\n RNS Number : 9178Z Begbies Traynor Group PLC 24 January 2011 \n \n\n24 January 2011\n \nQ4 2010 Red Flag Alert Report\n \nAlmost 148,000 companies struggling ahead of the full impact of public sector cuts and tax rises\n \nKey findings from the Q4 2010 Red Flag Alert Report:\n \n· 147, 836 UK companies are experiencing 'significant' or 'critical' financial problems\no the first year on year increase in distress for 7 quarters; a 4% increase from 141,527 in Q4 2009\no a 20% increase from 123,361 in Q3 2010\n· Those with 'critical' problems owe more than £52.7 billion to creditors, suppliers and service providers\n· A 24% increase in distress on Q3 2010, with more than 61,000 struggling companies in the industries exposed to public sector spending\n· A 17% increase to over 10,000 struggling businesses in retail sector on Q3 2010; while the wholesale sector experienced the largest rise in distress, up 30%\n· Evidence of an increase in actions from trade creditors\n \nAlmost 148,000 UK companies are facing 'significant' or 'critical' financial problems, whilst those with 'critical' problems alone are struggling with nearly £53 billion worth of liabilities, according to the latest quarterly Red Flag Alert, issued today by Begbies Traynor, the UK's leading business recovery specialist.\n \nThe report, which monitors the early warning signs of company distress, shows a 4% increase to 147,836 companies which experienced 'significant' or 'critical' financial distress in Q4 2010, compared to 141,527 companies in Q4 2009, representing the first year on year increase for seven quarters. The 147,836 companies also represented a 20% increase from 123,361 in Q3 2010, which was considerably more pronounced than the usual seasonal increase as seen this time last year (the number of companies increased by 6% from Q3 2009 to Q4 2009). \n \nWhilst these figures are heavily weighted to the less severe category of companies facing 'significant' problems (representing 144,818 companies in Q4 2010), the data shows a marked increase in actions taken by trade creditors against their debtors. \n \nThe 3,018 companies experiencing 'critical' financial problems alone o...