Investing.com -- A study by Begbies Traynor, a U.K. business recovery, financial advisory and property services consultancy, has revealed a significant increase in financial distress among U.K. firms.
The study was published on Friday and indicates a challenging year ahead for businesses across all sectors in the country.
The firm's latest Red Flag Alert report highlighted a concerning surge in the number of U.K. businesses entering a state of "critical" financial distress in the final quarter of 2024.
The report showed a rise of 50.2% in financial distress, affecting 46,853 companies. This significant increase underscores a deteriorating business outlook across the U.K., according to the study.
The report, which monitors the health of U.K. companies, pointed to a historic jump in financial distress, indicating that businesses across all sectors of the country are set for a challenging period. The findings of the report suggest a tough year ahead for U.K. firms as they grapple with increased financial distress.
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