FEWER firms in Yorkshire are facing “critical” financial trouble, a survey has revealed.
Yorkshire’s levels of critical business distress fell by 7% in the fourth quarter of 2011 compared with the same period the previous year, according to insolvency firm Begbies Traynor.
The firm’s quarterly Red Flag Alert statistics show a rise in the number of businesses nationwide suffering critical distress – in the form of county court judgements of over £5,000 issued against them or winding-up petitions.
But it said critical distress levels fell in Yorkshire, Wales and the North East – while every other UK region saw double digit percentage rises. The average for the country as a whole was up by 24%.
Across the UK, 5,306 companies showed instances of “critical” financial problems, according to the survey. The total for Yorkshire was 369.
Begbies Traynor spokesman David Wilson said: “It’s good news that we are seeing the numbers of business suffering critical distress levels falling in Yorkshire.
“The rise in business distress levels across many parts of the UK is being driven to some degree by the effects of large-scale public sector cuts and the knock-on record levels of job losses in the last quarter.”
Construction continued to be the sector hardest hit by critical problems – accounting for more than a quarter of all businesses in distress. However, this compares with the same quarter in 2010 when construction companies accounted for 32% of all Yorkshire firms facing critical distress.