Hants: 5,500 companies in distressed state

The number of Hampshire companies fighting for survival during June was up 38% compared with this time last year – although the overall number of county businesses in financial distress has slowed for the second consecutive quarter, according to figures released today by Begbies Traynor, the UK’s leading rescue, recovery and restructuring specialist.

A total of 5,527 Hampshire companies showed clear signs of financial difficulty during the last quarter according to Begbies Traynor’s Red Flag Alert system, which tracks detrimental data including winding-up petitions and other court actions on a daily basis.

Although the total number of ailing businesses reported for June was the lowest since October 2008, the company’s experts believe that levels of corporate insolvency across the UK as a whole are likely to rise above those experienced at the height of recession in the early nineties, peaking in 2012.

“Like unemployment figures, corporate and personal insolvencies are lagging indicators of the impact of economic change which means that we are likely to see an upward trend for some considerable time to come,” said Antony Fanshawe, southern regional partner with Begbies Traynor.

“Experience indicates that a significant number of companies currently experiencing financial problems will enter into formal insolvency procedures within a year.

“As ever, we are talking about survival of the fittest and the importance of taking professional advice at the earliest opportunity cannot be overstated.”

Red Flag Alert reveals 26,146 companies showing signs of ‘significant’ and ‘critical’ distress across the South West region as a whole (including South Wales) in the quarter to 30 June – 47% up on the same period last year. Nationally, the average year on year increase is 43%.