Yorkshire manufacturers show signs of recovery
Fewer manufacturing firms in Yorkshire were deemed to be at a heightened risk of insolvency in November, as new figures show a degree of recovery in the sector.
Data from insolvency and restructuring trade body R3 reveals a 1.2% fall in the number of companies deemed to be at above average insolvency risk.
However, 37.7% of manufacturers still face a serious threat of insolvency in the region, a figure which is above the national average of 37.1%.
It means that of nearly 15,000 active manufacturing businesses in Yorkshire, more than 5,600 faced a higher than average risk of insolvency in November.
In positive news for the region though, all ten of 11 sectors measured by R3 showed a decrease in insolvency risk, with only the hotel sector seeing a risk level increase.
Overall, the proportion of firms in Yorkshire deemed to be at heightened risk of insolvency dropped by 1% between October and November.
R3’s Yorkshire Chair Eleanor Temple said the latest figures are “reassuring” and suggested that most sector insolvency risk levels have “plateaued”.
However, she warned that businesses cannot afford to be complacent, especially as most sectors are displaying risk levels in‐line with the national averages.
Uncertainty surrounding Brexit and the economy have caused investment to slow in a number of industries and R3 has warned that any business in financial distress should seek advice at the earliest opportunity.
By speaking to insolvency professionals quickly, the number of potential restructuring solutions and other options that are available should be higher.
One option is an independent business review which can take an unbiased look at a company’s set‐ up, keeping a close eye on its assets, forecasts and finances.
This can help a business to develop stronger strategies and to streamline business areas where operations are not running as strongly as possible.
By Phil Smith
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