CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow UK business distress at record low – R3
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines


Commercial Credit News


UK business distress at record low – R3 PDF Print E-mail
Monday, 08 June 2015

Levels of business distress in the UK are at a record low, with only a quarter (24%) of businesses reporting a key indicator of distress, according to the latest Business Distress Index from insolvency trade body R3.

Every indicator of distress tracked by R3 is at its lowest since the research began. 10% of businesses are experiencing decreased profits, 11% are experiencing falling sales volumes, 6% are seeing market share fall, 8% are regularly using their maximum overdraft, and 6% are making redundancies.
Phillip Sykes, President of R3, says: “Having stayed constant throughout 2014, UK business distress levels have fallen once more. Many companies will feel they have successfully negotiated the trickier parts of the rapid economic growth we saw last year. As growth slows, businesses are less at risk of over-extending themselves.
“The flip side of this is that signs of growth may start to become rarer as business growth hits a plateau.”
While the share of businesses (68%) experiencing at least one sign of growth returned to record highs, the share of businesses reporting individual signs of growth is dropping.

Phillip Sykes adds: “While the level of growth has returned to its peak, the pace of growth is weakening slightly. A higher number of businesses are seeing at least one indicator of growth but fewer are experiencing multiple growth signals.”
For example, the proportion of businesses investing in new equipment has fallen from 42% in October 2013 to 27% in April 2015.
Smaller businesses closing the gap with big business

Smaller businesses are recording the greatest drop in signs of distress. Only 20% of sole traders are reporting one or more signs of distress, compared to 50% in November 2014.
Phillip Sykes continues: “Although the largest businesses continue to experience the fewest signs of distress, it is encouraging to see difficulties for smaller businesses easing. It’s been a particularly difficult few years for many sole traders and they’re only now beginning to see recovery.

“Business confidence is strong with just 4% of businesses expecting their activity to decrease in the next year. 47% expect it to increase and 48% think it will stay the same.
“Looking ahead, businesses face a mixed picture. Although the likely date of an interest rate rise continues to be moved further into the future, a rise will come eventually. The Bank of England’s growth outlook remains solid but has been downgraded. And a referendum on British membership of the EU could cause uncertainty for business.”

(Source - R3 Press Release)

3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards


Tuesday 3 October - Guoman Tower Hotel, Central London

Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.

To book your place to attend, please contact Alison Lucas.


CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road

Registered in England No: 05483197