Research released today by the UK’s largest Insolvency Practitioner firm, Begbies Traynor, shows almost 100,000 additional businesses dropping into significant financial distress in Q1 2021.

The Red Flag Alert research also shows:

• 723,000 businesses now in 'significant financial distress', a 15% increase from Q4 2020 to Q1 2021 - the largest increase since its research began in 2014
• 42% year-on-year increase in 'significant financial distress' (213,000 businesses) since Q1 2020
• The number of businesses in significant financial distress increased in all 22 sectors analysed in this research in the last quarter

The full press release from Begbies Traynor can be accessed here.

Steven Cooklin, Manolete CEO, said,“ The Government was forced to act to prevent widespread business failure in the wake of Covid crisis. However these necessary measures could never be sustained for an indefinite period. This very significant research carried out by Begbies Traynor shows there is a substantial and fast growing number of businesses in financial distress.”

The research was also reported in the Financial Times and City AM.