19 December 2017: A recent report has warned that the risk of insolvency for companies in the West Midlands is rising as the year comes to an end. This elevated risk of insolvency is now at its highest point so far this year. The statistics, published by insolvency trade body R3, reveal that nearly one in three businesses in the region are in the elevated insolvency risk band – equivalent to approximately 87,800 companies.
This is an eight per cent rise on the figures at the start of the year, when 62,800 faced an elevated risk of insolvency. Technology & IT, transport and haulage contain the highest percentage of struggling businesses whereas the manufacturing and hotels sectors are currently the hardiest.
Whilst the rise in possible insolvencies is not great news generally, it does serve as a useful reminder for directors to ensure that they are focused on monitoring a company’s finances and to ensure that plans are in place to manage any eventuality. We always tell people that the earlier they seek advice from us, the less likely they are to need to use our insolvency services. Not because we think that it makes for a great soundbite but because it is true. The earlier advice is sought when things are not going to plan, the more options are available and more can be done to try and get a business back on track. We will always give the right advice for the client regardless of the fee outcome for ourselves.
Should you wish to speak to any of the BRI management team for a confidential, no obligation discussion please do not hesitate to get in touch.