THE number of businesses in reporting signs of distress remains significant – although it is below the national average, according to research by insolvency trade body R3.
Figures from the organisation also show that 19% of firms in the region admit to regularly using their maximum overdraft facility, compared with 30% across the UK.
However, some 35% of businesses in Yorkshire say they are experiencing reduced sales volumes, close to the national figure of 37%.
Chris Wood, Yorkshire R3 committee member and partner at Cleckheaton-based Clough Corporate Solutions, said: “While businesses in the region seem to be faring better than in some parts of the country, many are still reporting signs of distress and yet we have not seen the number of corporate insolvencies we would expect.
“This could be down to a number of factors, but will certainly have been influenced by a shift in creditor attitudes.
“With the realisation that economic recovery is still not on the horizon, creditors – including HMRC and the banks – have been giving businesses ‘Time to Pay’ on their taxes and more breathing space to settle their debts.”
Mr Wood said suppliers and investors were reluctant to support businesses perceived to be struggling, adding: “We are seeing more and more suffering, but this is not manifesting itself in business failures.”
