0370 1500 100

Distress Research ‘A Very Positive Picture’ For Northern Firms

R3 Releases New Figures On Pressures Faced By Businesses


By Rob Dixon

New figures suggesting that fewer companies in the North of England are facing financial difficulty are welcome but underlying pressures continue to be a major for many businesses, according to corporate recovery specialists at Irwin Mitchell.

Research by R3 found that more than two-thirds of companies polled no longer show any distress indicators, a rise of around 20 per cent from the same point 12 months ago. A similar amount (59 per cent) stated they show signs of growth.

The Business Distress Index also found that 31 per cent of those surveyed would deem utility costs as a big concern, with 22 per cent stating that a fall in consumer spending was a worry.

Commenting on the findings, Andrew Walker, a Partner and specialist in insolvency at Irwin Mitchell’s Leeds office, said the news was clearly for the most part positive.

He outlined: “It is very positive that fewer firms are experiencing signs of distress, but the trend of increasing fixed costs on items such as utilities is worrying when combined with either a static or falling turnover caused by weak demand.

“This may only lead to further pressure on the margins of many companies, which may mean that many so-called ‘zombie’ businesses could be pushed over the edge.”

Read more about Irwin Mitchell's expertise in relation to Insolvency