LONDON, July 15 (Reuters) - Levels of serious financialdistress among British businesses fell by 39 percent in thesecond quarter of 2013 compared to the same period a year ago,according to a report by British restructuring specialistBegbies Traynor.
The number of British businesses experiencing 'critical'financial problems fell to 3,001 in the three months to the endof June from 4,947 in the same period in 2012, indicating "asignificant turnaround in the health of the UK economy," BegbiesTraynor said in its latest Red Flag Alert report, published onMonday.
Begbies said the figures, which followed a 9 percent fall inthe first quarter, represented the second highest year-on-yeardecrease since the beginning of 2011.
Construction, professional services and financial servicescompanies saw the biggest improvement, it said.
"With critical distress levels falling at a record pace,this quarter's improvement appears to be the first real signthat the UK economy has turned a corner towards a sustainedrecovery," Julie Palmer, a partner at Begbies Traynor said.
"However, we have real fears that many SMEs will haveserious financial difficulties at the time they least expect -during a recovery."
The British restructuring specialist warned that many smallbusinesses run out of cash during the recovery phase, as thereis a real temptation to overtrade.
Several recent surveys have raised optimism about Britain'srecovery outlook.