Yorkshire shows higher than average recovery rates

Yorkshire is showing a higher recovery rate than the rest of the UK and is performing well across most sectors according to the latest research by R3, the insolvency trade body. In September, Yorkshire and the Humber had the lowest level of manufacturing firms with a higher than normal risk of insolvency with just 16.8% or 1,941 firms compared with a national average of 19.3%.

It was also among the top performing regions in the property, banking, hotels, pubs, restaurants and technology sectors.

In fact, of the ten regions surveyed, the only sectors in which it came lower than third place was in the professional services and retail sectors. R3 uses research compiled from Bureau van Dijk’s ‘Fame’ database of company information to track the number of businesses in key regional sectors that have a heightened risk of entering insolvency in the next year. “Generally, we have seen Yorkshire and the Humber remain fairly robust throughout the recession and the strength of key sectors such as manufacturing is helping to drive a stronger recovery than in many other regions,” explained William Ballmann, chair of R3 in Yorkshire and partner at Gateley LLP. “These latest figures show that our region is in pretty good shape compared with many other parts of the UK and it is particularly encouraging to see steady improvement across such a wide range of sectors.”

“After some tough times, it’s great to see the region’s economy bouncing back, but as ever, we urge businesses to proceed with caution during the recovery phase. With the prospect of interest rate rises in the not-too-distant future, it is vital to plan ahead and keep a close eye on cash flow.”