Achi news desk-
The company’s latest red flag warning report, published yesterday, shows there was a 22.6% increase in “critical” or more advanced distress among Scottish businesses in the first quarter compared to the same period last year.
This type of severe distress affected more than 2,060 businesses in Scotland, Begbies Traynor noted.
READ MORE: Ian McConnell: A strange Brexit perspective from a true believer
It noted that there was a 20.1% year-on-year increase in severe distress among businesses across the UK in the first quarter, with more than 40,170 businesses affected.
Comparing the first quarter with the last three months of last year, critical distress among Scottish businesses was down 8%. This was a less sharp drop than a corresponding drop of 15.4% in the UK as a whole.
READ MORE: Head of famous global fashion chain excited about ‘new country’ as Scottish store opens
Begbies Traynor said: “Of the 22 sectors analyzed in Scotland, 13 saw an increase in critical distress in the first quarter of the year compared to the first three months of 2023. The most affected were printing and packaging, with an increase of 166.7 %; followed by food and drug retailers, an increase of 102.7%; travel and tourism, an increase of 83.3%; and food and drinks, an increase of 77.8%. Property and real estate, and construction also saw a clear year-on-year increase, with increases of 60.2% and 30% respectively; while professional services rose by 23.3%.”
He added: “The strongest performing Scottish sectors in Q1 2024 compared to Q1 2023 with falls in advanced distress were utilities, down 83.3%; industrial transport and logistics, down 31.8%; and wholesale, 25% off.”
READ MORE: Ian McConnell: Big surprise development at CalMac
Ken Pattullo, managing partner of Begbies Traynor in Scotland, said: “It’s no surprise that businesses in Scotland and across the UK continue to struggle in such a tough economic climate. Unfortunately, inflation is slowing less than expected and, with ongoing global unrest, the picture is far from certain.
“In Scotland, it is clear that the business-to-business and consumer-facing sectors are suffering as many people continue to struggle under the pressure of rising prices and yet feel that an economy the UK on the road to recovery.”
