Karl,
Interesting, but have a look at:
Begbies Traynor flags big rise in distress
StockMarketWire.com
Nearly half a million businesses across the UK are in a state of 'significant' financial distress, even before the effects of a potential interest rate hike are felt, according to Begbies Traynor's latest Red Flag research.
The research showed that 448,011 businesses were experiencing 'significant' levels of financial distress at the end of the third quarter, up 27% on a year ago.
It said almost 250,000 of these companies (Q3 2107: 248,619) ended the period with negative net worth, representing a sizeable population of so called "zombie" companies that had managed to survive thanks to the prolonged low interest rate environment and flexible labour market, but which did not have adequate working capital to fund any growth or absorb rising input prices.
Begbies Traynor warned that with the prospect of an interest rate rise alongside increasing employment costs, due to changes in the minimum wage combined with HMRC's crackdown on personal service companies (often set up to avoid employers' national insurance), many of these struggling companies would not have the reserves available to survive.
The research also showed that 'significant' financial distress rose across every sector and region of the UK over the past year, with the professional and financial services sectors being worst affected, increasing 42% to 26,113 and 34% to 11,079 struggling businesses respectively.
http://www.moneyam.com/action/news/showArticle?id=5725858