Companies in distress

New research from Begbies Traynor shows that 329,834 UK companies were experiencing 'significant' financial distress at the end of Q2 2017, a 25% increase from Q2 2016. The group said this was the largest annual increase since Q2 2014 and was the largest number of corporates experiencing significant distress in at least 5 years. The Red Flag Alert research for Q2 2017, which monitors the financial health of UK companies, showed that SMEs made up the majority of this increase, with 'significant' distress rising 26% to 308,423 businesses, while large companies saw distress rise by just 12% year-on-year to 21,411 businesses at the end of Q2 2017. The report highlights concern that a cooling housing market is proving particularly challenging for property and construction companies, with smaller firms bearing the brunt. Fears that Brexit and the rising cost of imported goods may add to the strain.The Credit Protection Association would therefore take the opportunity to remind you of the importance of monitoring the financial health of your customers and key suppliers using its Status report and monitoring service which are included in our credit management subscription.

Palmer & Harvey difficulties are a warning to SME’s

cpa.co.uk/palmers-harvey-difficulties-warning-smes/