Problems stabilise but construction is still in distressÂ

According to Begbies Traynor's Red Flag Alert research for Q2 2018, which monitors the financial health of UK companies, the number of city businesses in significant distress remained flat between Q1 and Q2 (885 to 889).

A year ago, there were 767 firms experiencing significant problems in the city.

Nationally, the report found 472,183 UK businesses were experiencing significant financial distress at the end of June, up nine per cent compared to last year, but down one per cent compared to the previous three months. 

Julie Palmer, partner at Begbies Traynor in Portsmouth, said: '˜After a significant jump in financial distress during the first quarter of 2018, a period marred by weak consumer confidence, growing political uncertainty and the Beast from the East, we may now be seeing tentative signs of stability returning to the UK economy.

'˜Although the volume of businesses in significant financial distress remains at relative highs, the rate of deterioration in UK corporate health has slowed during Q2, supported by recovering business and consumer confidence, higher levels of employment, and continued interest rate stability. While there's a chance this positive trend could continue, the outlook for certain industries is looking increasingly uncertain.' 

She said that in Portsmouth many sectors experienced a stabilising of distress levels, however, some sectors are facing problems, such as the construction industry, where the number of businesses in significant distress rose to 144 in Q2 2018, up seven per cent from 135 in Q1 2018.

General retailers are also experiencing difficulties with 48 in signifciant distress, up from 33 in Q2 2017.