Picture more positive for Yorkshire hospitality sector
OCTOBER was another month of steady recovery in the region with latest research showing that the number of businesses with a higher than normal risk of insolvency continued to fall across most sectors, including hospitality.
According to insolvency trade body R3, a number of consumer-facing sectors in Yorkshire and the Humber showed strong improvement. The rate of restaurants with a higher than normal risk of insolvency fell by 1.7% to 669 businesses, and pubs by 0.6% to 429 businesses.
However, while distress in these sectors is gradually falling, they remain among the sectors most vulnerable with 26% of pubs and restaurants in the region considered to be at higher than normal risk of insolvency, reflecting the national average of 26% of pubs and below the UK-wide figure of 30% of restaurants.
Since September, eight of the 13 sectors analysed in Yorkshire and the Humber showed a slight decrease with only manufacturing (3.3%), hotels (7.5%), property (1%), professional services (0.4%) and transport (0.06%) seeing an increase in numbers of businesses at above normal risk. This largely reflected national averages across the UK.
“Yorkshire and the Humber have once again shown a steady recovery across a broad range of sectors, showing that the regional economy is moving in the right direction,” commented William Ballmann, chair of R3 in Yorkshire and partner at Gateley. “The uplift in pubs and restaurants is encouraging although these sectors remain among those at the highest risk. Hopefully, their steady recovery will be further boosted by a busy festive season.”
He added: “While the picture across the sectors is looking more positive than it has for some time, the recovery remains fragile and with cash reserves depleting following the recession, directors must continue to keep a close eye on cash flow and resist the temptation to over trade. We urge businesses to continue to tightly control costs, keep a close eye on the balance sheet and remain cautious.”
