Number of British construction companies, financial difficulties, increased by 20% compared with the previous quarter, according to an analytical report of the Begbies Tryanor Red Flag.
According to the study of early warning signs of difficulties for companies, the number of construction firms have difficulties or firms that have the potential to have increased by 20% to 19.167 thousand Recall that this index in 2010 increased 8% compared to 2009 Mr.
According to executive director of Begbies Traynor Group Rick Trainor, the study revealed two trends: the present British business structure showing real signs of distress, as well as the fact that creditors are losing patience with respect to the debtor, in turn, needing cash to develop their own business.
"Research has demonstrated new findings, facing the UK construction sector. This is especially true for small and medium-sized businesses. Sector, mostly dependent on government spending, currently there is a reduction in such spending, as evidenced by the financial impact from recent cuts in the services sector and construction sector ", - said the expert.
The analytical report emphasizes that, for small construction companies now is "the darkest hour before dawn." They face a double challenge: reducing demand and increasing pressure from larger competitors. According to the report, part of the construction sector of the insolvent UK at the moment are just a small construction company.