Companies ease out of financial distress

34 per cent decline in "critical" difficulties.

Fewer companies are facing severe financial distress than they were a year ago, in a sign that the economic climate might be improving in the UK

According to the Begbies Traynor Red Flag Alert for Q1, there has a been a 34 per cent decline in companies rated as having “critical” financial difficulties. Across all sectors, the number of companies reduced from 5,000 in the first quarter of last year, to 3283 in Q1 2013.

However, Begbies Traynor warned that the improvement “masks a patchy recovery” and said that sectors reliant on the consumer economy such as retail, leisure, media and real estate had seen an increase in financial distress for the period.

Plus, taken on a quarterly basis, there has been an 8 per cent increase in critical companies from the last quarter of 2012.

The number of leisure companies facing severe financial distress has rocketed by 81 per cent since last quarter, which the report says may be due to unseasonably cold weather in the start of the year. The number of construction companies in critical conditions almost halved compared on last year’s numbers, whereas the real estate sector hs seen fincnail ditress levels rise 24 per cent in the last year.

Julie Palmer, partner at Begbies Traynor, said, “The year on year improvement reflects the continued forbearance and benign monetary conditions facing UK businesses today, combined with an improving credit environment, albeit primarily for larger corporates. Business confidence is slowly returning in the form of greater business spending on both services and investment.”

The report also sounds concern over the lack of funding available to support the SME sector. The number of companies that managed to secure new funding had dropped by 14.5 per cent from a year ago, and down 11 per cent on a quarterly basis.

Palmer added: “The underlying trend is arguably one of an improving picture. However, given the slight increase in distress compared to the previous quarter, it remains to be seen if we are out of the woods yet. With business rate increases planned in April, HMRC’s new PAYE Real Time Information requirements coming into effect, and further minimum wage rises ahead there are still significant headwinds for the UK SME sector, which is typically less able to bear the burden of these changes than their larger counterparts.”

The support services and professional services sectors have seen the strongest recovery in the last year.

This story first appeared on economia

Photograph: Getty Images

This is a news story from economia.

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Piers Morgan struggles with the idea that anyone might ever refuse an opportunity to go on television

The Good Morning Britain host has contradictory beef with Ewan McGregor.

Has it been a while since you heard what Piers Morgan thinks? Are you shaking from withdrawal, refreshing your Twitter feed, unsure whether Kanye is or isn’t a narcissist? Well, fear not, the Mole has a fresh fix for you. After Ewan McGregor dropped out of appearing on Good Morning Britain today, a new take was born. Actors’ opinions are stupid, but also, actors should come on Piers Morgan's show and talk about their not-important views.

McGregor, who was meant to be promoting Trainspotting T2 on the show, tweeted this morning he had cancelled because of Piers’ (obviously half-baked) opinions on the Women’s March. “Was going on Good Morning Britain, didn't realise @piersmorgan was host,” McGregor wrote. “Won't go on with him after his comments about #WomensMarch.”

What truthbomb had Piers dropped to provoke this? That it was unfair women were protesting and where was the MEN'S march. A march for men! As if running our parliament, corporate system, legal industry and creative sector isn’t enough! They should probably all do a walk too! Poor men. No wonder the patriarchy is on its last legs. They must be so weary.

Still, hats off to Piers Morgan. It takes a real personal flexibility to maintain the title of Contrarian Extraordinaire of the Our Glorious Nation. By which we mean that Piers Morgan will think literally anything, if the money is right. Whether it’s writing that Kim Kardashian is so awful she caused someone to have a stroke, or that he loves her for being herself, the man is so darn unpredictable. 

Morgan accused McGregor of being "just an actor", and that he should be “big enough to allow people different political opinions”. Once again, he asked the age-old question: are you an enemy of free speech if you won't go on someone’s early morning television show? This might be alien to Piers, but people don't have to go on television if they don't want to. 

And what if Ewan had appeared on the show chatting about his film? “Happy to appear on my show for your film, but not happy with my opinions? Classic money-driven actor,” the inevitable Morgan tweet would have read. It's quite easy, this Piers Morgan lark. No, it isn't. Yes it is. Cheque please! 

I'm a mole, innit.