Recently 6,781 businesses are flagged as distressed companies by the red flag alert data during early 2019 till March 2019. Most of the companies are showing strong signals of disruption or are in the early stages of distress. The list of the companies in clued small, medium and even big businesses running for years now. Most of the companies are showing legal problems like county court judgments and also winded up petitions against them for more than £5,000. And hence one say it is not a great sign for the overall Ireland industrial and business sector.
Begbies Traynor of Belfast has mentioned this that the number of seriously distressed companies which are in the critical state has risen since last year by 128% in all of Northern Ireland. However the total number of companies showing any kind of sign of legal, financial, or administrative distress has reduced by 1%, however, still, it is observed that the overall conditions have not improved by any measure.
Retail and construction taking the brunt
Most of the business which is labeled as distressed and in trouble are showing problems in wide forays but the most kind of reasons are legal or financial. Businesses are either facing some kind of subjection to the county court or are falling from their financial positions.
The hard-hit industry is the one which is consumer based because of which the companies in retail and construction are showing major deterioration. The biggest reason behind it is that the consumers are showing uncertainty in these companies and also lesser confidence in brands. In early 2019 it is seen that 15 northern Ireland consumer-based businesses are in critical condition whereas there were only 4 in the early months of 2018. Also, the number of retail forms who are in the advanced level of distress is double as compared to 2019 and the condition is likely to get more disturbing.
Begbies Traynor also pointed out that construction will hit hard and this will also a surging chain effect on the other sectors as well. Also recently it is seen that the number of jobs is at the all-time low since last year causing more negative ripple effects into various sectors.
On the brighter side
With all the gloom covering other sectors with falling consumers and finances, tours and travels are showing a lot of progress comparatively. This is due to the fact that recently northern Ireland has been the home for a game of thrones shooting schedules. This has led to considerable growth in the number of tourists turning up. This has led to the fact that slowly the advanced distressed condition that the tourism was in is fading.