Latest figures from the Southern Committee of R3 show a drop of 1.3 per cent in the proportion of businesses in the South East at risk of insolvency this month.
The research, compiled by insolvency trade body R3 using Bureau van Dijk's 'Fame' database of company information, tracks the proportion of businesses across key sectors that have a heightened risk of entering insolvency in the next 12 months.
11 out of 13 industries tracked showed a decrease in the amount of businesses at higher than normal risk, including professional services, which has dropped below 30 per cent of businesses at risk for the first time in five months.
The industries seeing this positive change include manufacturing, pubs, restaurants, technology and IT, and agriculture.
Across the South East, 27.7 per cent of businesses are now at risk of entering insolvency in the next 12 months.
Andrew Watling, chairman of the Southern Committee of R3 and partner at Quantuma, said:
"It's always positive to see a decrease in risk across the board going into the new year as January is traditionally a tough time for many industries. It’s a good time for businesses to get on top of their finances and prepare their model for the coming year."
However, the hotel industry and retail have both seen increases in the percentage of businesses at risk of entering insolvency.
Andrew added:
"The South East's retail businesses will be hoping for a strong turnout for January sales to offset this increase. The region has one of the highest rates of insolvency risk in this sector so a good Christmas period would be particularly welcome. We urge those who are facing financial difficulty to seek advice early from professionals."
If you would like to discuss how Carswell Gould could help, our team of experts are keen to chat. Fill in your details below and we'll be in touch shortly.
