R3’s quarterly ‘Business Distress Index’ reveals over 850,000 businesses are experien

[Legal Beagles]

New research intended to ‘take the temperature’ of the financial situation of businesses across Great Britain reveals that decreased profits are the most common cause of distress.
The first of R3’s new quarterly research shows that 50% of all UK businesses experienced decreased profits in this quarter. 44%, or 750,000 had seen a reduction in sales volumes, whilst 32% had seen a fall in their market share.
Other key findings include:

• 26% of respondents said that one or more of their regular customers had stopped working with them;
• 24% have had to introduce pay cuts or freezes;
• One in five (19%) admit to cash-flow difficulties;
• 18% say that some of their suppliers are insisting on payment in advance;
• 17% have been using their maximum overdraft facility fairly frequently;
• One in ten (14%) are finding it difficult to pay invoices on time and
• 13% have had to make redundancies.

The ‘Business Distress Index’ is designed to rank early warning signs of distress to businesses and is also accompanied by practical advice on how to avoid company insolvency.
For more information visit the R3 website.


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