'Businesses want certainty as we approach the Budget': Number of West Midlands firms in distress rises
The number of West Midlands businesses experiencing ‘significant’ distress has increased year on year by 9.2 per cent to 39,669 according to latest figures from Begbies Traynor's Red Flag Alert, which monitors the financial health of UK companies.
Other areas across the Midlands also saw annual increases in distress. In neighbouring Shropshire the number of businesses experiencing ‘significant’ distress has increased year on year by 15.5 per cent to 4,369.
In Staffordshire, the number of firms in distress rose by 14.3 per cent to 4,333. In Worcestershire this rose by 11.9 per cent to 2,895 and in Herefordshire the number of distressed businesses increased by 22.6 per cent to 2,020.
Across the wider Midlands more than 86,000 companies are now classed as being in ‘significant’ economic distress, a year-on-year increase of 11.9 per cent.
Nick West, partner at Begbies Traynor, said: “As we approach the Budget in November, businesses are looking for certainty after a turbulent and unpredictable year.
“In times of uncertainty, it is vital for business leaders to take stock and review their past, present and future income streams. There are often options available if the early signs of distress are recognised and addressed, whether that is through restructuring, refinancing or a managed exit."
He added that "periods of change can present opportunities" and continued: "Strong, well-positioned businesses have the chance to strengthen or diversify by acquiring or rescuing struggling but viable firms, helping to preserve jobs, skills and ideas across the region.
“The coming month will be crucial. To sustain jobs, innovation and growth, we need a healthy balance of small, medium and large enterprises. Business leaders across the Midlands, from consumer industries to those building homes and machinery, will be looking to this Budget for the confidence to invest in their people, their operations and their future.”
