Yorkshire manufacturers show signs of improvement
Insolvency risk levels among Yorkshire’s manufacturing firms remained high in April, but month‐on‐month rates slowed, according to new figures.
Data from insolvency and restructuring trade body R3 shows that 2.5% more manufacturing firms were deemed to be at above average risk of insolvency when compared to March.
It means nearly 35% of businesses in the sector are deemed to be at serious financial risk – equating to nearly 5,100 of 14,571 active firms.
On a positive note, the rise in insolvency risk has dropped from February to March when a 4.1% jump was noted month‐on‐month.
The level of risk among Yorkshire manufacturers echoes the nationwide average where 33.8% of firms are deemed to be at risk.
Of the 12 main regions in the UK, risk levels were highest in Wales at 37.9% and lowest in Northern Ireland at 30.4%.
Meanwhile, on a sector by sector basis, nearly all in Yorkshire showed signs of improvement in April as insolvency risk levels decreased compared to March.
Reflecting on the figures, R3’s Yorkshire chair Eleanor Temple described a “worrying increase” in insolvency risk in the last year, before listing inflation concerns and uncertainty surrounding Brexit as the primary factors.
She added that although a positive outlook was noted in April, “we are far from being out of the woods yet”.
Business risk levels are still rising across the board, and while improvement is being seen in the hotels, construction, agricultural and manufacturing sectors, the proportion of firms deemed to be at above average risk is still high.
Those facing financial difficulties should act as quickly as possible by seeking appropriate advice for their situation.
Not only does this increase the number of potential solutions that could be available in terms of insolvency or restructuring, but it may also be possible to refinance.
By Phil Smith