The latest Begbies Traynor “Red Flag Alert” research reveals that the number of UK companies in ‘significant’ financial distress jumped by nearly 10% in Q2 2024 to 601,950 businesses. This marked acceleration was driven significantly by the Travel & Tourism (+20.1%), Hotels & Accommodation (+16.4%) and Bars & Restaurants (+12.2%) sectors. Also, during Q2, ‘critical’ financial distress increased by 1.1% to 40,613 companies in the UK. This followed noticeable increases in the Automotive (+13.2%), Industrial Transportation & Logistics (+12.2%), Health & Education (+8.4%) and Bars & Restaurants (+7.3%) sectors. Companies from the Construction, Real Estate, Hospitality, Financial, and Support Services sectors account for nearly 50% of the businesses in ‘critical’ financial distress. To read Begbies Traynor’s news release, go to https://www.begbies-traynorgroup.com/news/press-releases/over-600000-uk-firms-face-financial-strain-amidst-challenging-economic-climate.