The number of British businesses showing signs of distress has reduced dramatically according to new research published today. However a large number of businesses are still under pressure, with a third of businesses still in need of help.
The research, carried out by insolvency trade body R3, has tracked five key indicators of business distress over the past two years. When the survey was first run in 2012, 64% of businesses were showing one or more signs of serious problems with the business but by April 2014 the number in distress had dropped to 33%.
The research uses indicators of distress that include decreasing profits, the regular use of maximum overdraft facilities and redundancies.
These figures have reflected a fall in the number of formal insolvencies, such as liquidations, over the same period. However the figures have also shown that the rate of reduction in business distress and formal insolvencies has been slowing since 2013.
It is very good news for the economy as a whole that businesses are showing signs of distress and that fewer are going bust. However, one third of businesses are still encountering problems and it is important for these businesses to seek advice rather than ploughing on without considering all their options. There are a number of turnaround options for struggling businesses and business owners who ignore the warning signs can get into deep water if they make the situation worse by simply soldiering on.
If you are concerned about the outlook for your business, call us today for a free, impartial and no-obligation consultation. To find out all your options, call us today on 01709 331300. We can help.