Only one in five (20.8%) Welsh agricultural businesses and one in five Welsh hotel businesses (20.6%) are at heightened risk of insolvency in the next 12 months, according to research by R3, the insolvency trade body. These figures are lower than the cross-sector percentage of businesses in Wales at higher than normal risk (25%).
These sectors also compare favourably to others in the country, with 36.2% of restaurant businesses at risk and 35.8% of Technology and IT businesses at risk in the next year.
Ross Connock, Chair of R3 in Wales and Director at PwC, comments:
“For a country that’s so dependent on agriculture and tourism, it is very encouraging to see that hotels and agricultural businesses are faring so well despite ongoing challenges. We are now at the height of the summer season so it will be interesting to see whether hotels have attracted enough customers by September to tide them over the winter months.
“Farmers will also be busy making silage for winter and gearing up for harvest time, so they will be hoping that their good fortunes last. These are two sectors that are very much at the mercy of the weather during the winter, so having a productive summer season can make all the difference.”
R3 uses research compiled from Bureau van Dijk’s ‘Fame’ database of company information to track the number of businesses in key regional sectors that have a heightened risk of entering insolvency in the next year.