Report suggests more companies are in financial trouble now than in 2024

MORE than 8,500 Devon businesses are in financial trouble, with the number having skyrocketed in the past year.

- by WILLIAM TELFORD

The latest Red Flag Alert report shows that across the South West, including Devon, more firms are facing difficulties.

Plymouth has seen a rise year-on-year, but Exeter has actually seen the number drop compared to last year and the previous quarter. However, across the South West there has been a general sharp rise in business distress, according to the report by business consultant Begbies Traynor, which monitors the financial health of UK companies.

The new figures, for the first three months of 2025, show that 41,164 South West businesses are in "significant" financial distress a 4.9% annual increase, despite being a 14.4% decrease in the first quarter of the year. Devon had 8,554 businesses classified as in "significant" distress, a jump of 5.2% on the same quarter in 2024.

The figure was, however, down 13.8% on the final three months of 2024. Begbies Traynor said a similar pattern was observed in cities and towns.