Friday, September 24, 2021

Fall in distress for Yorkshire’s professional services sector

The proportion of professional services firms in Yorkshire deemed to be at higher than average risk of insolvency fell by 0.5% in January, following falls in October and November, according to the latest R3 research.

In Yorkshire, 50% of professional services firms are currently in the higher risk category, representing over 1,900 of the over 3,800 professional services firms regionally.

Across all business sectors R3 found that 42.8% of all UK companies were at higher than average risk of insolvency in January, with Yorkshire only slightly above this figure at 44.4%.

The region outperformed the national average in a number of sectors including pubs (34.5% at higher risk in Yorkshire, compared with 35.2% nationally) and restaurants (33.2% at higher risk in the region, 34.5% nationally).

Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, said: “With ongoing uncertainty around Brexit and fears of a slowdown in the UK economy, many businesses have been keeping a tight hold on the purse strings and this includes spend on professional services advice.

“What’s more, digitalisation and increasing competition are also presenting additional challenges to the sector.

“We are fortunate in Yorkshire to have such a vibrant community of professional advisers, but they too need to be aware of financial pressures within their own businesses.

“If the economy does see a downturn, as is being widely predicted, the informed advice of professional services experts will be more important than ever in helping businesses to weather the storm.”

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