'Businesses want certainty as we approach the Budget': Number of Shropshire firms in distress rises
The number of Shropshire businesses experiencing ‘significant’ distress has increased year on year by 15.5 per cent to 4,369 according to latest figures from Begbies Traynor's Red Flag Alert, which monitors the financial health of UK companies.
Analysis of the data also shows the rate of businesses experiencing distress has sped up, with an increase of 16 per cent compared to the last quarter.
Though other counties across the Midlands, including Leicestershire, Northamptonshire, Worcestershire and Herefordshire, saw annual increases in distress, Shropshire was the only county in the region to see this quarterly increase.
The towns and cities across Shropshire also experienced challenges in the past year with sharp annual rises in ‘significant’ distress in Shrewsbury (up 28.3 per cent), Oswestry (up 40.3 per cent), and Telford and Wrekin (up 15.3 per cent).
However, year on year numbers fell in Bridgnorth (down 4.2 per cent). and Ludlow (down 2.7 per cent).
Hardest hit industries across Shropshire were real estate and property (515 businesses in distress - up 47.1 per cent in quarter three), construction (758 businesses in distress - up 19.1 per cent) and support services (585 businesses in distresses - up 7 per cent).
Across the wider Midlands more than 86,000 companies are now classed as being in ‘significant’ economic distress, a year-on-year increase of 11.9 per cent.
Nick West, partner at Begbies Traynor, said: “As we approach the Budget in November, businesses are looking for certainty after a turbulent and unpredictable year. With financial distress rising across the county, this will especially be felt by firms in Shropshire.
“In times of uncertainty, it is vital for business leaders to take stock and review their past, present and future income streams. There are often options available if the early signs of distress are recognised and addressed, whether that is through restructuring, refinancing or a managed exit. Shropshire businesses have demonstrated remarkable resilience in a challenging economic climate, but we may see more companies coming under strain and facing difficult decisions in the months ahead.
“However, periods of change can present opportunities. Strong, well-positioned businesses have the chance to strengthen or diversify by acquiring or rescuing struggling but viable firms, helping to preserve jobs, skills and ideas across the region.
“The coming month will be crucial. To sustain jobs, innovation and growth, we need a healthy balance of small, medium and large enterprises. Business leaders across Shropshire and the Midlands, from consumer industries to those building homes and machinery, will be looking to this Budget for the confidence to invest in their people, their operations and their future.”
