A significant rise in the number of companies suffering "critical" problems was noted during the first quarter, it has been revealed.

Figures from Begbies Traynor, which specialises in corporate recovery and restructuring, show that over 3,000 companies had county court judgements awarded against them during the first three months of the year.

This represents a four-fold increase from the same period last year and is a ten per cent rise compared with the final quarter of 2007.

Begbies Traynor forecasts that around 20 per cent of these firms will face insolvency over the next 12 months and that the number of insolvencies declared this year will rise to 13,492.

Among the sectors where most companies were facing problems were construction, professional services, retail and property with formal insolvency appointments up 19 per cent.

Nick Hood, a spokesman for the corporate rescue firm Begbies Traynor, told the Guardian: "We are getting busier, and the banks are telling us they have an increasing number of businesses in intensive care...This is not a good time for any business to fall out with their bank manager."


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