BEGBIES TRAYNOR has revealed that businesses in financial distress is falling year on year.
According to the Begbies Traynor Red Flag research distressed companies in the first quarter of 2012 has shown a decline of 17% year on year.
However, it is not all good news as the latest figures are a 59% increase on the last quarter.
Manufacturing is leading the way out of recovery with a 37% drop in the number of companies in financial difficulty.
Following in their footsteps is the food and beverage industry which saw the number of distressed companies fall by 37% and print and packaging declined 73%.
However, construction and property continued to see a significant decline with businesses in financial distress in this sector increasing 104% and 122% respectively.
Ric Traynor, (pictured) chairman of Begbies Traynor, and majority owner of the Red Flag division, said: “We have seen numerous construction firms, contractors and suppliers restructure or withdraw from markets recently, and there are concerns that the impact of the sustained spending freeze on this sector is being masked by the fact that many sub-contractors are not immediately counted in government unemployment numbers.
“Although business distress levels are up 59% from the last survey of Q4 2011, the overall year-on-year total of instances of combined distress is down 17%, a welcome sign that the manufacturing sector, aided by low interest rates and a competitive pound, is leading the economy gradually back towards improved financial health.”
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children