New research by Begbies Traynor has found that despite the Q3 improvement in the financial performance of businesses, the numbers of significantly distressed companies (562,000) is still 15% higher than pre-pandemic. In the past quarter, there has also been a 17% rise (to 1,668) in critically distressed businesses. Support Services (87,694), Construction (72,465) and Real Estate & Property (70,552) are the most distressed sectors. The research also notes that there has been a 139% uplift (to 21,769) in CCJs in the past year and cautions that CCJ’s are often a bellwether for future insolvency. Julie Palmer, Partner at Begbies Traynor, commented: “The UK economy — which remains one large recession short of its pre-COVID trajectory — is quickly recovering. However, it may prove to be transitory as rising CCJ figures are a cause for real concern.” To read Begbies Traynor’s news release go to https://www.begbies-traynorgroup.com/news/business-health-statistics/562000-uk-business-facing-financial-distress-in-q3-2021-with-dramatic-rise-in-court-action-fuelling-insolvency-concerns.