Profits flailing in private businesses - R3
Private companies in the Midlands have experienced increases in almost all the main signs of business distress in the last three months. That's according to research from trade body R3.
R3's quarterly business index said that just 26 per cent of businesses reported an increase in profit over the three months to October, compared with more than half (54 per cent) which reported a decline.
The research found that less than one in ten (9 per cent) of businesses in the region have expanded their market share, which is the lowest regional growth figure in the UK.
More than one in four (26 per cent) of Midlands businesses also reported to regularly using their maximum overdraft facility
R3 Midlands chairman Matthew Hammond, a partner at PwC in the Midlands, said: "These latest quarterly statistics show that businesses are not out of the woods yet, with signs of distress increasing in most key indicators compared to the previous quarter. This worrying trend largely mirrors the slowdown in GDP growth the UK economy experienced last quarter.
"The first few years after a recession are historically difficult as it is some time before businesses can rebuild their reserves sufficiently to support expansion."
