Yorkshire tech firms see insolvency risks mount
More than 40% of technology businesses in Yorkshire are facing an above average risk of insolvency, according to the latest figures from R3.
The insolvency and restructuring trade body revealed that the tech sector has seen its level of risk gradually increase during the last eight months.
With 40.5% of Yorkshire firms deemed to be above normal insolvency risk levels, that figure is also greater than the nationwide average of 39.8%.
For instance, the risk level jumped by 6.5% between November and December, while just 32.6% of firms were viewed as being at risk of insolvency back in May this year.
It means more than 4,600 technology firms in Yorkshire, of a total of around 11,500, are facing a very real risk of insolvency over the festive period.
Nationally, 32.9% of firms in all sectors are facing an above average risk of insolvency, with all 11 industry sectors in the R3 survey showing an increase between May and December.
In Yorkshire, the construction, manufacturing and agricultural sectors have seen their risk levels surge by more than 8%.
Yorkshire's chair of R3, Eleanor Temple, said that many technology firms have chosen to base themselves in the region, while Sky has also expanded its presence in Leeds.
However, she added that the nature of innovative small firms makes them more liable to insolvency and business failure.
'The fact that levels of risk for businesses in technology, along with most other sectors, have increased over the year is very worrying'. she added.
R3 advise that any firms facing insolvency, or with concerns over their future operations, should seek appropriate professional advice at the earliest opportunity.
From guidance on administration or restructuring processes, by acting quickly it should be possible to increase the number of options that might be available.
By Phil Smith