More U.K. Businesses Are Facing Distress on Economic Uncertainty

As talks on a Brexit deal fumble on, the uncertainty it has brought is hurting U.K. property firms and the financial services sector, Bloomberg News reported. The number of companies classed as being in “critical distress,” often a precursor to insolvency, rose 17 percent in the first quarter from a year earlier, data compiled by financial adviser Begbies Traynor Group Plc show. It comes even as government figures suggest the economy picked up a little momentum in the first quarter, with GDP unexpectedly expanding in February for a second straight month. "Many U.K. businesses are currently in limbo and deferring major investment decisions. This, combined with consumers holding back on big ticket purchases, has resulted in increasing significant distress across many sectors,” Julie Palmer, a partner at Begbies Traynor, said in the report. “Capital intensive sectors - such as construction and property - are suffering.” Read more