YORKSHIRE remains one of the “most distressed” areas of the UK for businesses, a survey shows.
The latest quarterly Red Flag Alert issued by insolvency firm Begbies Traynor showed that 10,685 companies in the region face “significant” or “critical” financial problems.
The report, which monitors the early warning signs of company distress, said the figure for the final quarter of 2010 compared with a total of 10,242 Yorkshire businesses facing distress in the fourth quarter of 2009.
There was also a 3% rise in the number of firms facing “significant” problems to 10,451.
Construction, property, business services and IT remained the sectors with the most companies facing “significant” problems.
Across the UK almost 148,000 UK companies face “significant” or “critical” problems.
Nationally, the 3,018 companies experiencing “critical” financial problems alone owe a total of £52.7bn to creditors, suppliers and service providers.
David Wilson of Begbies Traynor in West Yorkshire, said: “Today’s figures show that Yorkshire businesses continue to demonstrate real signs of distress and that trade creditors are both losing patience with their debtors and are in need of collecting cash into their own businesses.”