R3 business stability research: 'Steady growth continues in North East tech sector'
The region’s tech sector is continuing to see a slow but steady reduction in its risk profile.
This is according to insolvency and restructuring trade body, R3’s latest research.
The proportion of local tech firms with a higher-than-normal risk of entering insolvency in the next year (47 per cent) has fallen for the fifth consecutive month and has now dropped below the national average (48 per cent) for the first time since May 2018.
The latest data shows that North East businesses in eight of the 11 sectors monitored by R3 are performing better than the national averages for their respective industries.
Andrew Haslam, chair of R3 in the North East and head of specialist business advisory firm FRP Advisory LLP’s Newcastle office, said: “The North East tech sector is getting an increasing amount of national recognition for its capabilities and achievements.
“The reductions in elevated insolvency risk levels over recent months have been incremental, but in the present economic climate, the fact that the IT sector has improved by small margins over an extended period is a very welcome development.
“Our hospitality sectors are continuing to hold their own at the top end of R3’s business stability rankings, while the North East construction sector, which was the worst-performing of its peers anywhere in the UK not so long ago, has now climbed up to fifth place and is doing better than the national industry average.”
The region’s pub and restaurant sectors continue to have the lowest proportion of companies at higher than normal insolvency risk of any region in the UK, while the agriculture and hotel sectors are in second and third place in their respective lists.
The overall proportion of all North East companies with an elevated insolvency risk (42 per cent) remains just lower than the 43 per cent figure for the UK as a whole.
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