Corporate recovery experts Begbies Traynor have released their Red Flag Alert, which monitors a series of indicators of company cash difficulties. Professional services is area hard hit, seeing a 61% hike in firms in trouble.
Begbies Traynor Group boss Ric Traynor is quoted by the BBC as saying :
"Over 15,000 firms in the professional services sector are showing signs of significant or critical problems - partly driven by a stale property and corporate deals market - often the drivers for an active professional services community,"
Traynor said that it appeared firms which operated with a high fixed cost base were finding the current market conditions increasingly difficult "as their revenues fail to recover and the scope for further cost reductions becomes more limited".
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