New research has revealed an increase in the number of Yorkshire companies experiencing “significant” or early distress in Q3 2022.

The latest Red Flag Alert data, published by leading independent business rescue and recovery specialist Begbies Traynor, reveals that for the three months to September 2022, there was a five per cent increase in the number of businesses in “significant” distress in the region, compared to the second quarter of the year.

The figures also reveal a six per cent increase in distress on the same period last year.

Julian Pitts, regional managing partner for Begbies Traynor in Yorkshire, said: “There’s no doubt that the economic climate is currently extremely bleak and there’s no real end in sight. Not only are shortages of raw materials and labour pushing up costs, with consumers likely to bear the brunt of rapidly rising prices, there are also supply chain issues, including severe driver shortages and escalating fuel costs.”

Begbies Traynor research reveals that for the three months to September 2022, there was a 5 per cent increase in the number of businesses in “significant” distress in the region.

In the third quarter of 2022 almost 35,000 businesses in Yorkshire showed signs of early-stage distress. They include firms with minor county court judgements of less than £5,000 filed against them.

The sectors which saw the sharpest increase in ‘significant’ distress year on year were utilities; real estate and property services; professional services; and hotels and accommodation.

Number of Yorkshire companies experiencing signs of "significant distress" rises