New reports suggest that a large number of Bristol businesses are in grave financial misfortune.
Begbies Traynor disclosed that businesses that allegedly had financial problems increased to 5% in the last quarter of 2018. It abruptly reached up to 5,800 establishments which suggest a low-profit rate of these businesses.
According to the data provided by Red Flag Alert, among these businesses, the companies that are progressing the worst are food companies and retailers. Red Flag Alert is responsible in monitoring the financial status of UK companies.
After a stable status of profit with the first to third quarter last year, sales suddenly went to a drop in the fourth quarter of 2018. This means that companies have had a hard time dealing with sales, and their financial capability is compromised, said Paul Wood, a partner at Begbies Traynor.
This occurrence might be explained by the fact that traditional customers who usually shop front are now going into online shopping and purchasing. In addition, the indefinite occurrence of Brexit highly affects a number of businesses and establishments.
It is apparent that during the last quarter of 2018, businesses are waiting for a decision regarding Brexit as to continue their services, which in turn made a negative impact on consumer confidence.
In order for these businesses to survive, they need to adapt to the rapid changing of sales marketing and procedures. They are hopeful for positive results in 2019.
Nevertheless, it was not all bad news for businesses in Bristol.
There was a decrease in financial problems experienced by leisure companies and local hotels in the city.
The report suggests that there was a rise of 15,000 from 466,000 to 481,000 of businesses that admit to having a financial crisis as compared last year.
The most affected sector was that under the real estate industry, which experienced a 7% increase in businesses who suffered financial problems between October to December last year.