East Midlands haulage firms face insolvency

East Midlands haulage firms face insolvency

More than 1 in 3 haulage firms in the East Midlands face going to the wall, according to new figures from a insolvency trade body.

The statistics, compiled using Bureau Van Dijk’s Fame database, also reveal an uncertain outlook for some of the region’s hospitality businesses.

The East Midlands agriculture sector was the UK’s top regional performer in April, with fewer than one-in-six (14.8%) businesses operating with an above average risk of insolvency. This is in line with the previous month (March), when the sector also outperformed its regional peers, with only 14.5% of businesses at higher than average risk of insolvency.

Conversely, the financial resilience of the East Midlands transport and haulage sector is being tested as the R3 research reveals that more than one-in-three (36%) local operators have an above average risk of insolvency.  This is the highest proportion of any region in the UK and is almost four points above the national sector average of 32.3%.

Restaurant operators in the area are also struggling, with almost one-in-four (23.7%) at an elevated risk of insolvency, marking the highest proportion in any UK region.

Commenting on the research, R3 Midlands Chairman Chris Radford, a partner at the Nottingham office of Gateley plc, said: “The East Midlands has the most financially stable agriculture sector in the UK, making it well placed to withstand the challenge of Brexit and fluctuating markets.

“The current economic climate is, however, providing significant stumbling blocks for other local sectors. The proportion of firms struggling financially in the hospitality, transport and haulage sectors is clearly of concern.

“R3 advises that the monitoring of finances should remain a priority for all business owners as they seek to weather all eventualities. If cash flow becomes a major challenge, it is imperative to seek professional advice sooner rather than later.”