As hundreds of marine companies exhibit in Southampton at one of Europe’s biggest boat shows this week, new figures show that nearly a third of businesses within the sector in the South East have a higher than normal risk of insolvency.
According to the Southern Committee of R3, which brings together insolvency experts from local firms, marine businesses in the South have remained relatively stable over the last year, but just under a third are still at high risk of insolvency within the next year.
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.
In September last year 31.4 per cent of marine businesses in the South East were classed as ‘at heightened risk’. This month, 31.5 per cent fall into that category.
Experts from R3’s Southern Committee say that while it may seem bleak news, the sector has remained relatively stable over the last year and that for nine months out of twelve, there have been small decreases in the percentage of businesses at risk.
Andrew Watling, chairman of the Southern Committee of R3 and partner at Quantuma, said: “The percentage of marine businesses at risk is still higher than the national average for all sectors, however it’s encouraging to see stability, couple with small but steady decreases on the whole.
“Similarly it’s not the sector with the highest percentage of companies at risk in the South East - restaurants, pubs and the technology and IT sectors have the highest rates in the region, standing at 40 per cent, 39 per cent and 36 per cent respectively.
“The marine sector has faced tremendous challenges throughout the recession, with manufacturers in particular being hard-hit, but the figures show that the industry is holding its ground. With more and more businesses addressing the skills gap and putting emphasis on innovation I am confident that the marine industry will be able to weather the storm.”
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