Finalists announced for the 2024 South Holland Business Awards
Lincolnshire Chamber of Commerce is delighted to reveal the shortlisted finalists for the South Holland Business Awards 2024.
Read MoreBusinesses in Lincolnshire are facing a growing burden of economic pressures, including rising interest rates and higher labour and materials costs, according to the latest Red Flag Alert data from leading independent business rescue and recovery specialist Begbies Traynor.
The report found that 1,260 businesses in Lincolnshire were suffering early or ‘significant’ distress in Q2 2023, a 3.5% increase on the same period in 2022 and up 8.2% on the first quarter of this year. ‘Significant’ distress refers to businesses showing deterioration in key financial ratios and indicators including those measuring working capital, contingent liabilities, retained profits and net worth.
Across the UK, ‘significant’ distress was up by 8.5% in the second quarter of this year compared to the same period last year, with a total of 438, 702 businesses affected. The three sectors most severely affected by financial distress nationally were support services, construction and real estate and property services.
The latest data is sourced from a completely new Red Flag dataset that has involved deep dive analysis of eight years’ company data by data scientists over the past two years to track key factors behind company distress and failure rates.
Of the 22 sectors monitored by Red Flag Alert, in Lincolnshire five sectors reported increases of 10% or over in the number of companies in significant financial distress compared with a year ago. Sectors suffering the biggest increases in significant distress in the region, compared to last year, included general retail (26.8%), telecoms and IT (22.8%), food and drug retail (14.3%) and support services (13.9%).
Gareth Rusling, who heads Begbies Traynor’s Lincolnshire offices in Lincoln, Scunthorpe and Grimsby, said: “Consumers and businesses have both been hit hard by higher interest rates and there are mounting concerns that the situation may worsen in the second half of this year in Lincolnshire and across the UK, when winter sets in and energy costs go up.
“Consumers are feeling the pinch and cutting back not just on discretionary spending but also on essentials to counteract higher mortgage and loan repayments. Meanwhile businesses are also seeing the cost of their debt rising and, still reeling from the effects of the pandemic and set back by higher energy bills and the effects of the war in Ukraine, it’s no wonder that the number of distressed companies has jumped since last year.
He added: “Our advice to businesses is to monitor their financial position carefully, and seek advice from qualified restructuring professionals as soon as any problems become apparent to avoid them escalating.”
Lincolnshire Chamber of Commerce is delighted to reveal the shortlisted finalists for the South Holland Business Awards 2024.
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