Many AIM companies are in poor financial health, according to the latest research from Company Watch.
The financial health monitoring specialist said that in a survey of 758 companies, 310 firms (41 per cent) are in the warning area.
Traditionally, one in four companies in this ‘red danger zone’ have either filed for insolvency or undergone a major financial restructuring.
The worst performing sectors are motor (with an average health score of 19 out of 100), telecoms (28 out of 100), leisure (30 out of 100), construction (32 out 100) and property (34 out of 100).
The best performing sectors are energy (80 out of 100), logistics (58 out of 100) and pharmaceuticals (55 out of 110).
The manufacturing sector had the most companies (31 per cent of those analysed) and scored 51 out of 100. Company Watch said this is a commendable outcome.
Nick Hood, head of external affairs at Company Watch, said: “Our survey shows the strains affecting companies listed on AIM in these tough times.
“It highlights that sectors most affected by Government cost cutting and the collapse in consumer confidence, such as construction, leisure and motor are in serious trouble.”