Midlands firms facing fewer critical issues than last year – Begbies Traynor

WEST Midlands businesses are more secure than last year, according to corporate recovery specialist Begbies Traynor.

Following the release on Friday of its latest national Red Flag Alert – which monitors the financial health of ‘corporate UK’ – the firm has revealed more about the picture locally. 

Its research found that across the Midlands, 32% fewer businesses faced critical issues between July and September 2012 than at the same time in 2011. The national figures show a fall of 22%.

In Birmingham there has been a 24% fall in businesses with critical issues between quarter two and quarter three of this calendar year.

John Kelly, regional managing partner at Begbies Traynor’s Birmingham office, said: “The statistics reflect what I believe is a more stable economic environment for businesses in Birmingham and across the Midlands.

“While we are not seeing growth, companies are controlling costs, improving efficiencies and grappling with the economic conditions. As a result there are fewer businesses in financial difficulty.

“Of particular note in Birmingham are falls in the number of businesses at risk in the construction sector and in retail – two sectors where both on a local and national level we have seen significant issues in recent years.”