Business News Round Up (29/10/2020)
Business distress in Scotland soars by 80% as more firms plunge into financial trouble
Financial distress is increasing sharply across Scotland’s economy with many industry sectors experiencing a marked rise in the advanced signs of money difficulties. The latest research from insolvency and restructuring business advisory firm Begbies Traynor shows an exponential rise from the last quarter. the Red Flag Alert data from Begbies Traynor reveals that almost twice as many businesses in Scotland were experiencing ‘critical’ distress by the end of September than at the end of the second quarter of 2020 in June. Critical distress is where businesses have had winding up petitions or legal decrees totalling more than £5,000 against them. More than 4,000 Scottish businesses are in significant distress, which indicates early signs of financial problems – this equates to a 15% increase and affects a total of more than 29,000 firms in the country.
https://www.insider.co.uk/news/business-distress-scotland-soars-80-22923355
Tier 3 restrictions dent business activity levels across Greater Manchester
The recent imposition of Tier 3 restrictions in Greater Manchester and the uncertainty around them in the days prior to the rules coming into effect have dented business activity levels. Greater Manchester Chamber of Commerce’s sixth GM COVID-19 Recovery Tracker survey, covering the first three weeks of October, found that customer demand has decreased since September with an associated worsening in cash positions for many businesses. The latest survey results show that current sales and advance orders from domestic customers have declined significantly when compared with the results of the third quarter’s Economic Survey.
Scottish Government unveils targeted approach to inward investment
A report outlining a new targeted inward investment plan focusing on nine key sectors to further internationalise Scotland’s economy has been published by the Scottish Government. Announced yesterday by trade, investment and innovation minister Ivan McKee, Shaping Scotland’s Economy: Scotland’s Inward Investment Plan will focus efforts on sectors where Scotland has global strengths and offers strong future prospects. Independent research suggests that the sectors identified are also likely to be among the most resilient to the impact of coronavirus. Priority will be given to companies that can build local supply chains, provide new skills, and invest in research. There will be an emphasis on the creation of regional clusters to encourage the spread of investment across Scotland.
Rise in number of distressed North West firms
The North West region saw a 15% surge in the number of firms operating under significant financial distress, despite unprecedented levels of government support, according to new data released today by Manchester-based insolvency specialist Begbies Traynor. The latest Red Flag Alert data for the third quarter of 2020 has recorded a 15% year-on-year increase in the number of distressed firms in the region. Since the beginning of the pandemic in the UK an additional 6,554 have fallen into distress, bringing the total to 54,207. Greater Manchester is now home to 22,783 troubled firms – a year-on-year increase of 15% from 19,756 – while the Merseyside region has 8,073 – up 17% from 6,872 at the same period last year. High profile sectors of the North West regional economy took a battering in the third quarter of 2020.
https://www.insidermedia.com/news/north-west/rise-in-number-of-distressed-north-west-firms