Insolvency and restructuring trade body R3 announced towards the end of last month that the number of UK organisations facing insolvency had grown significantly throughout 2017.
Incorporating a database of 3.6 million businesses, the research utilised performance indicators such as balance sheets and directors’ track records. It found that one third of companies possess a ‘higher than average’ likelihood of insolvency, which represents a large rise from the comparably-low one quarter at the start of the year.
Whilst the study did not provide details on how the bands were calculated or how many firms were in each category, it did conclusively state that the technology sector displayed the highest growth in risk. The transport and haulage, professional services and outsourcing sectors are also suffering from higher levels.
This news follows on from some government data released in 2017 that said the number of people in England and Wales registering as insolvent had at the time hit a five-year high; a sector that the personal insolvency teams based here at Walsh Taylor in the Leeds, Harrogate, Bradford and Darlington offices continue to support and work with.
Though the disappointing figures coincide with businesses dealing with increasing inflation, exchange rate changes and overall uncertainty post Brexit, there are numerous reasons why companies struggle financially.
With decades of experience offering our business support services to both individuals and organisations residing in Yorkshire and beyond, we understand the importance of dealing with these pressures as soon as possible.
Enlisting in the help of a licensed insolvency practitioner will ensure that you are told all the feasible solutions and are advised on how best to resolve the issues you are experiencing.
If you are in the Yorkshire area, including Castleford, Pontefract, Keighley and Knaresborough, and would like more information on how we can help, please feel free to give us a call today on 03300 244 660.