Number of struggling firms is growing

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The number of Preston businesses facing significant financial difficulty rose marginally in the third quarter of 2014, according to the latest Red Flag Alert report from business rescue and recovery specialists Begbies Traynor.

The research found that the number of businesses in significant financial distress rose by three per cent in the three months to September this year, with 1,177 businesses reported to be experiencing problems compared with 1,146 in quarter two and 970 in the third quarter of 2013 – a year-on-year increase of 21 per cent.

The financial and professional services sectors have been particularly hard-hit, with 31 per cent more financial services firms, and nine per cent more professional services firms experiencing significant problems.

Construction and infrastructure companies have also struggled during the past three months, with 24 per cent more industrial transportation and logistics businesses, 13 per cent more real estate and property firms and six per cent more construction companies experiencing significant difficulties.

David Acland, partner at Begbies Traynor in Preston, said: “The financial and professional services sectors had a difficult third quarter, suggesting that competition is still fierce.”