Business distress in Yorkshire lower than national average

Business distress in Yorkshire and the Humber is slightly lower than the UK-wide figure, according to the latest Business Distress Index from insolvency and restructuring trade body R3.

The report showed that only 53% of businesses in the region experienced negative indicators, compared with 57% nationally.

In Yorkshire and the Humber, the most common indicator of distress was slow payment with 23% of companies being owed payment on invoices that are over 30 days past due.

This was followed by 15% of businesses seeing decreasing profits; 15% companies which had to make redundancies; and a further 11% which saw a reduction in sales volumes.

Meanwhile, 59% of business in the region also said that they had experienced at least one growth indicator, compared with 69% across the UK.  

21% of companies in Yorkshire and the Humber reported increasing sales volumes; 18% said they were investing in new equipment; and 15% had seen their market share grow.

13% also said their business was expanding, while 12% were experiencing increased profits.

Eleanor Temple, chair of R3 in Yorkshire and barrister at Kings Chambers in Leeds, said: “The underlying corporate insolvency trend is rising, and businesses face a range of pressures, from sluggish economic growth to rising staff costs, with business rates an issue for many companies.

“It’s good to see Yorkshire businesses holding their own against the rest of the UK, but with many continuing to experience signs of distress, it is vital that they keep a close eye on the balance sheet and seek expert, professional advice should the situation worsen.”