Distress rates ring alarm for Lancashire firms

By Begbies Traynor

25 Jan 2023

Chris Lawton Of Begbies Traynor In Preston
  • 17% surge in significant distress levels compared to Q4 2019
  • 2% year-on-year rise in significant distress
  • Begbies Traynor says more than 10,000 firms remain in danger
  • New data published today by Begbies Traynor (25th January 2023) indicates businesses are still battling the legacy impact of Covid debt and are deeply troubled by inflation

Begbies Traynor say more than 10,000 (10,185) businesses are now on the brink and operating under significant financial distress – a 17 per cent rise from the same pre-pandemic period in 2019 (up from 8,696). 

It also found that 54 firms in the region were in ‘critical distress’ in Q4 of 2022 – a single year increase of 8 per cent (up from 50). 

The Red Flag Alert data, published by Begbies Traynor, has analysed the health of companies across the region for the last 15 years. 

10,185 firms in Lancashire remain in ‘significant distress’. This is a 2 per cent increase on the same period last year (9,957).

Nationally, more than 600,000 firms are now in significant financial distress (610,405). 

Chris Lawton, insolvency director at Begbies Traynor in Preston, said: “The difference between pre-pandemic business conditions and now is stark. These figures highlight the gloom in the economic climate since the pandemic. 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 Lancashire  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.

“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 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 Lancashire:

  1. Real Estate and Property (1,458)
  2. Construction (1,417)
  3. Support Services (1,362)
  4. General Retailers (722)
  5. Professional Services (615)
  6. Telecoms (599)
  7. Health and Education (495)
  8. Manufacturing (457)
  9. Automotive (382)
  10. Bars and Restaurants (373)

Latest news

1

Darwen gets go-ahead for 'transformational' manufacturing site Darwen Manufacturing Research Site Chapel South Visual

Darwen gets go-ahead for 'transformational' manufacturing site

24 May 2024

2

Uncertainty over devo deal progress after election call Lancashire Devolution

Uncertainty over devo deal progress after election call

24 May 2024

3

Lancashire business growth to outpace national average Pexels Goumbik 590045 Business Growth

Lancashire business growth to outpace national average

24 May 2024

4

How much money do you need to have a financial adviser? article placeholder listing image

How much money do you need to have a financial adviser?

24 May 2024

5

Washrooms firm appointed to three new commercial projects gary-wynne-managing-director-inscape-interiors.jpg

Washrooms firm appointed to three new commercial projects

24 May 2024

Lbv116 Ltb Strip980
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
28 May 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
28 May 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
29 May 2024 - 29 May 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 09:00

Business Networking in Lancaster - Eden Business Network
Eden Business Network.png.png
LBV Hub Networking
29 May 2024 - 29 May 2024

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
29 May 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Business Networking in Lancaster - BNI Castle
EVENT LISTING BNI Castle.png.png
LBV Hub Networking
30 May 2024 - 30 May 2024

Business Networking in Lancaster - BNI Castle

Vale of Lune RUFC, Powder House Lane, Lancaster, LA1 2TT

06:45 - 08:30

Business Networking in Burnley - BNI Kudos
EVENT LISTING BNI Kudos.png.png
LBV Hub Networking
30 May 2024 - 30 May 2024

Business Networking in Burnley - BNI Kudos

Prairie Sports Village, Windemere Avenue, Burnley, BB10 2FU

06:45 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
31 May 2024

Business Networking in Preston - BNI Brunch

Samlesbury Hotel, Preston, PR5 0UL

09:30 - 11:00

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
31 May 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
04 Jun 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
04 Jun 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
05 Jun 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 09:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin