Northern Ireland 'second best' in R3 insolvency tracker of 10 key business sectors
NORTHERN Ireland businesses have the second lowest insolvency risk in the UK according to the latest tracker from insolvency and restructuring trade body, R3.
Overall, 21 per cent of Northern Irish businesses are considered to have a heightened risk, compared to the UK average of 23.8 per cent.
Ten key sectors were scrutinised for the tracker, including manufacturing, pubs, restaurants, professional services, transport and haulage and retail.
Chairman of R3 in Northern Ireland, Michael Neill, said yesterday the results revealed "healthy signs of financial stability" in the region, with resilience evident in key industries.
"While there is clearly economic turmoil as a result of the EU referendum, Northern Ireland is well placed to face these challenges and sectors are performing strongly compared to many or our counterparts across the UK," he said.
"It is particularly positive to see the resilience of Northern Ireland's key industries such as manufacturing and the hospitality sector and if they can continue to maintain their stability, it will benefit the wider community.
"Many businesses may be dealing with the uncertainty caused by the aftermath of the vote. In light of the current environment, it's more important than ever to manage finances carefully and keep a close eye on cash flow."
Across Northern Ireland, transport and haulage was the sector with the lowest proportion of businesses at heightened risk (17.1 per cent), while technology and IT had the highest (33.2 per cent).
This was not surprising, Mr Neill said, with results reflecting the same financial instabilities as those across the UK.
"While it can be easy to enter the tech market, it often proves more difficult to maintain stability and growth," he added.
"Businesses in any sector can struggle with their finances, particularly in this time of uncertainty. We would encourage any company experiencing distress to take action and seek professional advice at the earliest opportunity."
The figures, from R3’s latest insolvency risk tracker, were compiled using Bureau van Dijk’s ‘Fame’ database and measured company balances sheets, director track records and other information to work out the likelihood of survival over the next 12 months.