Businesses in 'red flag' distress

THOUSANDS of Westcountry firms are at risk of going under amid rising financial distress, according to a latest survey

- WILLIAM TELFORD

The annual Red Flag Alert report shows a huge rise of businesses falling into the danger zone in parts of the region. The figures, from business consultants at Begbies Traynor, show that in Devon as a whole, more than 10,500 businesses are in danger of going under. In Cornwall it is 2,500, showing a double-digit year-on-year increases for both counties.

In Plymouth more than 1,200 businesses are in deep financial trouble and could go bust, according to new data. The number of businesses in “significant distress” in the city now stands at 1,223, up by 22.9% on the same time last year. In July last year 942 companies were in trouble.

The Red Flag Alert report, which monitors the financial health of UK companies, shows the annual increase of 18.2% for Devon and 16.6% for Cornwall, is similar to increases in Gloucestershire up 17.8% to 6,539 companies and Somerset, which is up 17.1%, to 16,373 businesses. Plymouth’s statistics are the second worst in the South West, behind Newquay in Cornwall, which has seen a 28.2% increase to 241 businesses in jeopardy. Bristol has seen a 22.5% hike on this time last year, with 4,976 in trouble, and Taunton is up 22.3% to 862.