Written by Keith Tully
The number of businesses failing is falling, according to a recent study.
Findings by Red Flag Alert & Begbies Traynor reveal that British firms are regaining their confidence and it’s all thanks to consumers spending more.
Julie Palmer, partner at Begbies Traynor, said: “With market sentiment improving and rising house prices giving homeowners increased confidence, consumer spending is proving to be the engine driving this recovery.”
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The research found that financial distress among UK companies is subsiding. The number of firms experiencing critical money problems was reduced by 2% last year and it is the hospitality sector that is feeling the greatest amount of assurance.
Consumer-facing industries like general retailing, food retailing, hotels, and bars and restaurants fared best with concern reductions of 8%, 16%, 21% and 30%.
Miss Palmer added: “Celebrating a return to form the UK’s consumer-facing industries have seen significant reductions in distress levels, both on a quarterly and annual basis, following a strong summer of sales aided by the extended period of good weather across the country.”
However, the research also showed that there has been a 29% rise in the number of SMEs experiencing financial distress. According to the study, small and medium-sized firms are bearing the brunt as higher funding costs take their toll.
What’s more, there has been a 34% increase in the number of firms in the professional services sector undergoing significant critical distress levels.
How can we help?
It seems that the UK economy is moving onwards and upwards slowly which is great news but if you fear that your company is going bust, you need to act fast.
There may be a solution which can save your struggling firm and here at Real Business Rescue we specialise in aiding businesses in trouble. Call us today on 0800 644 6080 for free confidential advice, or alternatively, pop into one of our regional offices. Click here to find the nearest one to you.