20,000 firms in distress
ALMOST 20,000 companies across Greater Manchester are in ‘significant’ financial distress, latest figures reveal.
The 19,179 businesses were identified through research published by Begbies Traynor in its quarterly Red Flag Alert data, which monitors the financial health of UK companies.
The figure for Q2 March to May - was 8% higher than the same period in 2017, which equates to 1,439 more distressed business.
Sectors hardest hit in terms of sheer volume were: support services up by 10% year-on- year, construction up 2% and real estate up 20% to 1,906.
Retailers in Greater Manchester are also feeling the pinch with 1,379 experiencing significant distress.
However, levels of financial distress are increasing at a much slower rate, year on year, than during the previous four quarters, reflecting a more positive trading environment in many sectors than a year ago.
Meanwhile the total of firms on the brink fell by 2% in Q2 compared to Q1, the first three months of the year.
Commenting on the figures, Gary Lee, partner at Begbies Traynor in Manchester, said: “Warmer weather and the royal wedding helped to stimulate some areas of the Greater Manchester economy in Q2 of this year.
“Higher levels of employment, increased consumer confidence and interest rate stability have supported this positivity.”