The UK economy appears to face increased business distress in the near future, especially companies in the South West which are very likely to face another tough year.
When it comes to critical distress, the South East has had a year on year increase of 33% and London has had a rise of 19%. These regions are starting to face severe financial issues; however, up until recently they have seemed recession proof. This could indicate the progression to a deeper stage of the recessionary cycle in the UK. Particularly in the automotive, construction, general retailing, professional services, property sectors and travel and tourism the distress levels have gone from significant to critical levels.
Due to the Olympics being held in London this year, it is believed that there will be serious consequences to the travel industry in particular, with at least one household name failing. As well as the tourism sector, with West End’s theatres already reporting a 95% decrease in sales for the duration of the Olympics.
Don’t let this be the end of your company, contact Beer & Young today to see how they can help. Beer & Young have many associates in the South East and South West regions who can arrange an informal chat with you either on the telephone or in person.
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