East Anglia: Risk of business failure in region at a record low, R3 survey indicates
PUBLISHED: 13:00 08 June 2014
The number of companies at risk of failure in the East of England has fallen to a record low, according to insolvency trade body R3.
Its latest survey found nearly two-thirds (64%) of firms in the region reporting none of the key signs of business distress.
This compares with just 25% in March 2012 when R3 launched its Business Distress Index, which monitors sales, profit and market share performance, overdraft use and redundancies.
The latest index also reveals that East of England business growth remains relatively strong since it hit a two-year high last autumn, with two-thirds (66%) of the region’s companies now showing at least one key sign of growth − an increase in sales, profit or market share, investment in new equipment or business expansion. This is 30 points up from the figure of 36% recorded in March 2012.
R3 eastern region chairman Frank Brumby, a director at Isadore Goldman in the region, said: “The fall in regional distress levels is very encouraging, particularly when married with evidence of business growth.
“However, the path to full recovery continues to be littered with obstacles, not least a possible personal debt ‘bubble’ and a potential rise in interest rates.
“Whilst it remains significant that around a third of all businesses in the region are still showing signs of distress, the good news is that this latest R3 research adds weight to the idea that our local marketplace is becoming healthier and increasingly confident about its prospects.”