In 2002, a total of 19,928 businesses failed in Great Britain, the highest number of business failures recorded since 1994 and up 6% on 2001.
“Sluggish UK gross domestic product (GDP) growth, weak domestic and international demand, and tumbling company share prices have fed their way through to reduced company profits and cash flow expectations,” according to the second issue of BDO Stoy Hayward’s Industry Watch.
The report forecasts over 69,000 business failures between 2003 and 2005 with expectations of an annual failure rate in excess of 25,000 in 2005, levels not seen since 1993.
For the full report, which seeks to identify the sectors facing the biggest challenges in the years ahead and includes BDO Stoy Hayward’s first in-depth sector profile featuring the retail sector, go to www.bdo.co.uk
