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HOW TO. . . RECOVER DEBTS
LOOK OUT FOR THE DANGERS
LURKING AHEAD by Chris Lawton Insolvency director at Begbies Traynor
New data published by Begbies Traynor in Preston indicates a short- term levelling off in distress rates for firms as company directors fight hard against the impact of spiralling inflation.
However, we believe that despite the small increase in the number of firms entering significant financial distress during the past quarter (97) across the region, almost 10,000 businesses are on the brink.
Danger ahead?
The Red Flag Alert data has analysed the health of companies across Lancashire for the last 15 years.
It reveals that 9,926 firms in Lancashire remain in ‘significant distress’ – a 12 per cent drop on the same period last year (11,254) which followed a national lockdown.
However, the number of businesses in Lancashire falling into ‘critical distress’ has more than doubled, with a 104 per cent increase during the past 12 months (from 25 firms to 51).
Nationally, more than half a million firms are now in significant financial distress (582,452).
Many businesses in Lancashire have been agile in their response to rising inflation and hopefully will have planned for costs of raw materials in particular to continue rising during the remainder of this year.
Ambiguity over which tax policies will be enacted in the UK looks set to continue as the new prime minister sets out the agenda.
There’s light at the end of the tunnel.
Whatever financial problems you are experiencing in your business, call us for a free consultation on:
01772 202 000
Chris Lawton E:
chris.lawton@
btguk.com
Begbies Traynor, 2-3 Winckley Court, Chapel Street, Preston, Lancashire, PR1 8BU
As well as uncertainty over domestic politics, there’s the international aspect to consider including the situation in Ukraine and the increasing cost of energy as we progress into autumn and winter.
Our message to business owners out there is that even if you are one of the firms in financial distress there are plenty of actions you can take swiftly to get a positive outcome.
Fresh funding is certainly accessible for many companies and re-financing and restructuring can give directors a platform for stability and survival in the final quarter of 2022.
Even if you are in financial distress, there are plenty of actions you can take to get a positive outcome
Smart directors have used the opportunity since the start of the year to look at their banking facilities and debt arrangements and have been proactive in restructuring their debts and operations.
Labour shortages and supply chain issues may also have an impact on the bottom line for a lot of companies and the working capital and cash availability will need to be monitored closely.
Company directors should stay alert during the remainder of the year and act quickly and decisively and speak to us first in the event of a sudden cashflow squeeze or demands from creditors.
Offices across the UK.
www.begbies-traynor.com
Begbies Traynor (Central) LLP, a limited liability partnership, registered in England and Wales No: OC306540. Registered Office: 340 Deansgate, Manchester M3 4LY A member of the Begbies Traynor Group: Specialist Professional Services.
www.begbies-traynorgroup.com
Our Preston office is committed to helping company directors and cementing our status as the UK’s leading independent business recovery practice.
If your business faces financial challenges or if you’re a creditor of a company or individual in financial peril – talk to Begbies Traynor.
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