Just over 186,000 UK companies are experiencing significant or critical financial problems compared with around 161,000 in the first quarter of 2010, according to Begbies Traynor.
The insolvency firm’s latest Red Flag Alert, published in April, claims that a total of 186,554 firms are in financial distress, a 15 per cent rise from 161,601 businesses year on year.
The report also reveals how specific sectors are suffering: year on year, the number of businesses showing signs of distress is up by 68 per cent in the bar and restaurant sector; by 60 per cent in the leisure and culture sector and by 23 per cent in the sports and recreation sector.
Other sectors also experienced worsening condition from the last three months of 2010 into the first quarter of 2011.
The Red Flag Alert reveals that 25,031 businesses in the construction sector were facing significant or critical financial problems in the first quarter, a 31 per cent rise on 19,167 construction companies in trouble during the fourth quarter of 2010.
There was an 87 per cent rise in the number of professional services firms in difficulty, to a total of 15,526 in the first quarter, from 8,293 in the last three months of 2010.
The insolvency firm’s latest Red Flag Alert, published in April, claims that a total of 186,554 firms are in financial distress, a 15 per cent rise from 161,601 businesses year on year.
The report also reveals how specific sectors are suffering: year on year, the number of businesses showing signs of distress is up by 68 per cent in the bar and restaurant sector; by 60 per cent in the leisure and culture sector and by 23 per cent in the sports and recreation sector.
Other sectors also experienced worsening condition from the last three months of 2010 into the first quarter of 2011.
The Red Flag Alert reveals that 25,031 businesses in the construction sector were facing significant or critical financial problems in the first quarter, a 31 per cent rise on 19,167 construction companies in trouble during the fourth quarter of 2010.
There was an 87 per cent rise in the number of professional services firms in difficulty, to a total of 15,526 in the first quarter, from 8,293 in the last three months of 2010.