Midlands’ haulage and tourism firms continue to struggle
Haulage and tourism firms in the Midlands continued to struggle throughout April, according to research from insolvency trade body R3.
Using figures from Bureau Van Dijk’s Fame database, R3 found that nearly one in three tourism firms in the West Midlands operated with an above average risk of insolvency last month.
Meanwhile, 34% of hauliers in the West Midlands and 36% of hauliers in the East Midlands were in a similar position, highlighting the struggles being faced by several key sectors on a daily basis.
Some 23.7% of restaurant firms in the East Midlands also reported a higher risk of insolvency in April
It was not all bad news for the two regions though, as just 18.4% of manufacturing firms in the West Midlands were operating with an above average risk of insolvency in April, making it one of the top performing regions in the UK.
Similarly, just 14.8% of agricultural firms in the West Midlands were operating with an increased risk of insolvency, with R3 describing the sector as having a “sound financial performance”.
R3 Midlands chairman Chris Radford praised the financial stability noted in the region’s agricultural sector, adding that it is well placed to cope with any challenges that Brexit may bring.
He also warned that the proportion of struggling firms in the transport, haulage and hospitality sectors is a “clearly a concern”.
Figures for the North East reveal that seven of 11 sectors have a higher rate of financial stability than the national average, although the construction, manufacturing, retail and agricultural sectors were all struggling.
Around one in four firms in the region is deemed to be at an above average risk of insolvency and any firms facing difficulties are encouraged to seek advice and to act quickly in order to improve the likelihood of turning their fortunes around.
By Phil Smith