Brighter signs for region in Red Flag report

The latest quarterly Begbies Traynor Red Flag Alert report, which monitors the financial health of businesses in the UK, found that there was a two per cent increase in the number of businesses with financial problems in the region in the fourth quarter compared with the previous quarter.

Across the UK as a whole, levels of early stage significant distress increased by three per cent during the period. Year on year, however, cases of significant business distress in Yorkshire were up by 18 per cent in Q4 2013 compared with the same quarter in 2012, against a UK average increase of 16 per cent.

Across the UK, 224,579 companies showed instances of significant financial problems. A total of 13,842 of those are based in Yorkshire.

Yorkshire’s rate of increase in significant distress compares favourably with other regions, with London showing the fastest rate of increase at five per cent, compared to the previous quarter.

Only Scotland showed a slower rate of increase in distress levels with a growth of one per cent compared to the previous quarter.

There are some signs that the UK’s construction industry is regaining confidence. Distress in the sector fell by three per cent year on year but rose by three per cent in Q4 compared to Q3.

Rates of significant distress among Yorkshire construction firms increased by just two per cent in Q4 2013 compared to Q3 and were up six per cent year on year.

Meanwhile, the region’s bars and restaurants saw an 18 per cent rise year on year.

Julian Pitts, regional managing partner for Begbies Traynor in Yorkshire, said: “We cannot overlook the fact that there is still a significant number of businesses in the region, which continue to suffer from earlier stage significant distress, resulting from funding, management or accumulated debt issues.”