Issued by listed insolvency practitioners, Begbies Traynor18 Apr 2020 00:42
Paul Scott of Stockopedia comments today...
Begbies Quarterly Red Flag Report
This is always an interesting read, issued by listed insolvency practitioners, Begbies Traynor (LON:BEG)
As you can imagine, it's a sobering read, given the current crisis.
Key points;
Highest ever (for this report) number of companies in significant financial distress, at 509,000
Figures likely to be "tip of the iceberg" as impact of Covid-19 worsens
SMEs chiefly affected
Problems accessing Govt funding
Many companies likely to run out of cash at end April, and be unable to fund payroll
Many businesses were already "cut close to the root" before CV19 crisis began, hence now likely to fail - owners not having appetite to borrow money they will never be able to pay back
Expecting material increase in number of companies in financial distress as 2020 continues