Business distress for companies in NI increases by 52%, new data reveals
The number of companies in Northern Ireland showing the most serious signs of business distress has grown by over 50%, according to new data.
Insolvency advisor Begbies Traynor said there had been a 52% increase year-on-year in companies showing signs of distress during the second quarter.
Its Red Flag Alert data showed that 'critical' business distress was up by 41% quarter-on-quarter here. 'Critical' distress refer to signals of problems, including county court judgments over £5,000 and winding-up petitions.
Ken Pattullo, head of Begbies Traynor in Northern Ireland and Scotland, said: "Rises of more than 50% in the most critical instances of distress are very worrying, and indicate that a number of businesses could be facing serious difficulty."
It said political uncertainty was partly to blame, even though the province's finances could benefit from full realisation of the £1bn deal between the DUP and Conservatives.
The firm added: "The recent uncertainty from the result of the general election has failed to clear up the doubts over the future of the UK economy, and although there could be some Northern Ireland public funding benefits with the UK government's DUP-Tory deal, the data shows there are more tough times ahead for businesses here."