New report reveals decrease in 'business distress' across region

By Begbies Traynor

03 Nov 2021

chris-lawton-of-begbies-traynor-in-preston.jpeg

13 per cent decrease in financial distress in region compared to previous quarter Evidence of economic recovery – but almost 10,000 firms remain in distress Warning over 139 per cent rise in CCJ’s during Q3 2021 as businesses resort to courts to recover debts

New research from Begbies Traynor in Preston reveals a 13 per cent reduction in business distress in Q3 of 2021 compared to the previous quarter – but confirms that almost 10,000 firms in Lancashire still face significant financial challenges.

9,739 businesses located in the region are now operating under significant financial distress according to the latest Red Flag Alert data for Q3 2021. The quarterly research, produced by Begbies Traynor monitors the levels of financial distress experienced by companies across Lancashire.

The gradual re-opening of the economy and steady increase in consumer confidence is reflected in the latest figures with a 13 per cent reduction in the number of firms in distress compared to the previous quarter (Q2 2021 saw 11,254 firms from across the region in significant financial distress compared to Q3 2021 which saw 9,739).

Notable double-digit reductions in distress were seen across Lancashire in Construction (15 per cent reduction), Industrial Transportation (23 per cent and Health & Education (17 per cent).

Some sectors of the regional economy still retain high volumes of distress in the region by sheer volume. These are Support Services (1,332), Construction (1,408) and Real Estate & Property (1,163).

Nationally, there are now more than half a million firms (562,550) who are currently in significant financial distress. CCJ’s are often a bellwether for insolvency and the latest data paints a gloomy picture. Official data shows there were 9,101 CCJs lodged against companies during Q3 2020, rising to 21,769 during Q3 2021 – a 139 per cent increase. This acceleration in CCJ’s was also evident between Q2 and Q3 2021 with a 51 per cent uplift.

These figures show that court activity is picking up as creditors, especially landlords, become more aggressive in chasing debts.

Chris Lawton, insolvency director at Begbies Traynor in Preston, said: “The percentage fall in business distress across the region is certainly good news and gives directors some breathing space as they recover from the pandemic. However, the sheer number of firms still in financial peril is worrying. Every day we’re having conversations with business owners and their advisers and the same two issues keep cropping up.

"Firstly, there are huge challenges for many companies in repaying bounceback loans they’ve taken out. Secondly, creditors, including HMRC and landlords are taking an increasingly aggressive line in chasing debts. The pressure is still on for thousands of businesses and we’re likely to see an acceleration of insolvency rates in 2022 as funds dry up and directors have exhausted their options. Company directors who find their business in financial distress should take swift action before their options run out.”

Latest news

1

fulfilmentcrowd reports record-breaking performance LeeThompsonfulfilmentcrowd

fulfilmentcrowd reports record-breaking performance

20 Dec 2024

2

Record year for Grant Thornton Northern deals team The team

Record year for Grant Thornton Northern deals team

20 Dec 2024

3

New partner among family team hires as Brabners strengthens personal offer Cara Nuttall Chris Fairhurst And Hannah Saxe

New partner among family team hires as Brabners strengthens personal offer

20 Dec 2024

4

Amazing Accrington bring in almost £400k in funding to Hyndburn Clayton Boxing Club press.jpg.jpg

Amazing Accrington bring in almost £400k in funding to Hyndburn

19 Dec 2024

5

BAE Systems solar powered aircraft achieves new stratospheric success The flight

BAE Systems solar powered aircraft achieves new stratospheric success

19 Dec 2024

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Preston Tech Connection - January Meet-Up
Nov Preston Tech Connection event banner-4.png.png
LBV Hub Networking
15 Jan 2025 - 15 Jan 2025

Preston Tech Connection - January Meet-Up

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

R.I.S.E. and Shine
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
16 Jan 2025 - 16 Jan 2025

R.I.S.E. and Shine

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

08:45 - 11:00

The Business Network Central & East Lancashire
LBV Hub Networking
16 Jan 2025 - 16 Jan 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

LBV120 Magazine Launch Event
DSC9389
Networking
17 Jan 2025

LBV120 Magazine Launch Event

Lancastrian Suite, Town Hall, Chorley, PR7 1DP

08:30 - 10:30

Red Rose Awards 2025
Red Rose Awards 2025
Awards
13 Mar 2025

Red Rose Awards 2025

Winter Gardens Blackpool

18:00 - 11:59

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV118 Online Graphic
Subscribe now

Weekly news bulletin