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".
Wednesday, 13 April 2011
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