A new study has revealed that thousands of companies across the Yorkshire region are experiencing major money worries, mostly as a result of the COVID-19 pandemic.
This research concluded that over 38,000 Yorkshire firms are in serious trouble with their finances, which is close to 9,000 more than the number that were in that position at the close of 2019. The last year has seen the number of businesses in Yorkshire that have hit turbulent financial waters increase by 29% – which is a clear indication that the pandemic is at the root of the problems.
The study was conducted by Begbies Traynor on behalf of Red Flag Alert, and it shows that levels of serious financial distress among firms in Yorkshire had risen by double digit amounts across all 22 of the industries that Red Flag Alert monitors.
The levels of these increases varied from 45% to 18%. The figure among its tourism and travel firms rose by 40% compared with the close of 2019, while among property firms it was up 39%.
Julian Pitts from Begbies Traynor told the Yorkshire Post that:
“The Government’s extended furlough and financial support measures will provide some relief and should save a significant number of businesses from entering into insolvency in the short term.”
In the longer term, some of these companies may be able to find a way out of financial trouble by speaking to a business accountant from South Yorkshire about steps to improve their cash flow and reduce any overheads.