Date Published: 25th January 2023
New data published today by Begbies Traynor (25th January 2023) indicates businesses in the Liverpool City Region are still battling the legacy impact of Covid debt and are deeply troubled by inflation.
Begbies Traynor say more than over 9,000 (9,226) businesses are now on the brink and operating under significant financial distress. It also found that 58 firms in the region were in ‘critical distress’ in Q4 of 2022 – a single year increase of 26% (up from 46).
The Red Flag Alert data, published by Begbies Traynor, has analysed the health of companies across the region for the last 15 years.
9,226 firms in the Liverpool City Region remain in ‘significant distress’. This is a 3% increase on the same period last year (8,993).
Nationally, more than half a million firms are now in significant financial distress (610,405).
Jason Greenhalgh, Partner at Begbies Traynor, said:
“Company directors must stay alert and act quickly and decisively as we progress into 2023 which is already bringing its own challenges. The conversations we’re having with company directors in the Liverpool City Region indicate these challenges are being faced in all sectors of our regional economy.
“It’s clear that business owners are working hard to tackle rising inflation, soaring energy bills and doing their best to ward off the impact of what looks like a looming global recession but in too many cases it won’t be enough.”
Keith Tully, partner at Begbies Traynor, added:
“The scenes of industrial action being taken in the public sector symbolise the strain felt by those in the private sector too who are under pressure to deliver pay rises where revenues are flatlining or even declining.
“It will not be unexpected to see further cutbacks on goods and services in some key sectors of our regional economy. The challenge for businesses across the region is to remain competitive and they should plan strategically through further financial strain by restructuring their organisation or their debts. As interest rates rise and a less generous energy support scheme kicks in, there is more pain to come for SME’s in the region.”
Top ten sectors in significant financial distress by volume of firms based in the Liverpool City Region:
Jason first started at Begbies Traynor in July 1989 as a junior on the old YTS scheme via the Chamber of Commerce in Manchester and progressed through to Senior Administrator over a period of time to 1997.
After a short time away, he rejoined Begbies Traynor and sat the JIEB Insolvency Exams in December 2002 and initially obtained a non-appointment license the following year after which he continued to progress through the grades to Senior Manager.
In May 2008 Jason was promoted to Insolvency Director, upgraded his insolvency license with the IPA and has taken corporate insolvency appointments since then. In July 2011 Jason was rewarded for his efforts and commitment to Begbies Traynor when he was promoted to Partner.
Throughout his insolvency career, Jason has gained valuable experience at every level and has dealt with a wide range of different insolvency assignments. Since taking appointments in 2008, he has concentrated on the mid range insolvency market and has helped many struggling owner/managers of distressed businesses.
Jason enjoys rugby league and follows his local team the Leigh Centurions. He also enjoys attending live music events and keeping fit.