Birmingham businesses facing 'critical' issues, says report
More Birmingham businesses struggling to beat the recession are facing "critical" problems. That's according to the latest Red Flag Alert report from corporate recovery specialist Begbies Traynor.
Birmingham businesses reported 1,797 significant problems against 2,988 for the first quarter, down 40 per cent. However, it was up 11 per cent on critical problems – 105 from 95.
John Kelly, regional managing partner in Begbies Traynor’s Birmingham office, said: "It looks as if Birmingham businesses are in for a rough ride this autumn."
"The austerity measures mean the government is finding it difficult to give second chances or extend its support to business owners that have chosen to use their money for another purpose and as a result, the number of winding up petitions issued by HMRC in Q2 2011 has more than doubled since Q1."
Financial distress across sectors is variable, with manufacturing, utilities and print and packaging all showing signs of improvement.
However sectors reliant on discretionary spending such as travel and tourism have faced a steady increase in critical distress in Q2 2011, according to the report.
