Number of companies facing financial difficulty up 104%

The number of companies reporting serious financial difficulties has risen by 104%.

Figures from financial advisory firm FGS show that 753 firms went into liquidation, receivership or examinership during 2008.

There has also been a dramatic rise in the number of companies becoming insolvent. During 2007 that figure stood at 370.

Financial advisory firm FGS said it’s particularly concerned that many of the business failures recorded last year happened between October and December.

Unsurprisingly, the construction sector was worst hit with 299 companies reported financial difficulties.

The hospitality and services industry also fared badly as 109 firms experienced insolvency problems.

As the economic situation shows no sign of improving in the short term FGS is now anticipating that the number of receiverships and examinerships will continue to increase during 2009.