Improving signs for pubs and restaurants in the East of England

R3 Eastern chairman Frank Brumby.

R3 Eastern chairman Frank Brumby. - Credit: Archant

Hospitality is among the East of England’s most improved sectors in terms of financial security, according to a new study.

Figures compiled by insolvency body R3’s eastern branch, using Bureau Van Dijk’s Fame database, show that just over a third (35%) of pubs in the region are at higher than normal risk of insolvency, marking a 5% fall compared with last month’s figure.

And the proportion of restaurants in the region with a higher than normal risk of insolvency (42%) has also fallen, for the third consecutive month.

The outlook is also improving for the East of England manufacturing, construction, agriculture and retail sectors, all of which registered monthly decreases in the percentage of businesses with an elevated risk of insolvency.

R3 Eastern chairman Frank Brumby, a director at Isadore Goldman in Norwich, welcomed the results of the R3 research, but advised businesses to remain cautious.

He said: “These statistics are starting to paint a more positive picture for business recovery in the region and the indications of growing sector stability are encouraging.

“There are, however, significant economic and legislative hurdles to overcome, not least the implementation this month of the National Living Wage. While laudable in its aims, it may impact greatly on those businesses with a high proportion of lower paid workers.

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“With so much uncertainty still upon us and with so many businesses at risk of insolvency, it’s important for all business owners to plan ahead and monitor finances carefully. If cash flow becomes a major issue, it’s imperative to seek professional advice before it’s too late.”