8% dip in number of ‘critical’ firms
THE number of North West firms on the critical list declined in the first quarter, according to data from accountancy firm Begbies Traynor.
Its Red Flag report classifies businesses as critical when they have County Court Judgments against them totalling £5,000 or more, a winding-up petition or being in a voluntary arrangement.
Year-on-year, the number of North West businesses on the critical list fell by 8% to 343, but there was a 6% increase on the final quarter of 2013.
Nationally, the number fell by 7% to 3,063 compared to the same period in 2013. There has been a 4% increase since the end of 2013.
The firm said construction, financial services and travel and tourism saw some of the largest declines in distress, falling 15%, 31% and 11% respectively.
Begbies partner Julie Palmer said: “These latest figures are proof that the UK economy hasn’t just turned a corner, but is getting firmly back on its feet.
“However, Q1 has historically been a difficult period for UK businesses, especially for those in consumer facing sectors with the post-Christmas slump caused by a tightening of customers’ belts due to excess festive spending. This year businesses have also been hit by adverse weather, undoubtedly deterring people from leaving their homes.”
