ALMOST 5,000 businesses in the north are displaying symptoms of financial distress according to new research.
The quarterly Red Flag Alert from independent business rescue and recovery specialist Begbies Traynor reveals a mixed picture of financial distress in Northern Ireland’s economy, with small businesses undergoing the worst hardship.
At the end of the first quarter of 2017 a total of 4,732 businesses were displaying symptoms of financial distress in Northern Ireland, 95 per of which were SMEs.
This figure has risen by 156 small businesses in the three months since the end of 2016.
In total, business distress in Northern Ireland rose by two per cent year on year against a higher UK annual increase of eight per cent.
In terms of the most serious distress, which includes winding up petitions and county court judgements the region showed a market improvement, with levels of ‘critical’ distress falling by 16 per cent year in year, better than the UK average.
Ken Pattullo, who heads Begbies Traynor said the rise in less severe distress was "concerning".
“The combination of tremendous economic and political uncertainties which Northern Ireland is facing not surprisingly seems to be having a negative effect on business investment.
"Small businesses are the lifeblood of our economy and it is especially worrying that the numbers of SMEs suffering financial distress are on the rise," he added.
Sectors in Northern Ireland that were particularly hard hit by rising levels of business distress included industrial transportation and haulage firms, which saw a 14 per cent increase in distress from the last quarter and the food and drink sector.
The region’s construction and financial services industries, however, fared better, however with both seeing a fall of nine and eight per cent respectively.
