The number of UK companies struggling to stay afloat has fallen in a further sign that the economy is holding up after the Brexit vote.
In the three months after the referendum on 23 June, the number of firms in significant financial distress fell 6% to 248,916 from the preceding quarter, according to the insolvency company Begbies Traynor. The number of distressed companies fell 2% from a year earlier.
Businesses across the UK economy showed resilience with the biggest improvement in the construction sector, where the number of distressed firms fell 11% from the previous quarter. Distressed professional services firms reduced by 10% as work flowed in from clients seeking advice on Brexit, Begbies Traynor said.
Ric Traynor, executive chairman, said: “The UK economy appears to be in a stronger position than expected following the EU referendum result. While we wait to see whether the government opts for a ‘hard’ or ‘soft’ Brexit strategy, businesses at least appear to be better placed to tackle any new challenges on the horizon.”
