Swift – Awards Edition 2024
Our Awards edition of Swift for 2024 can be found here. This includes interviews with and insights from this year’s...
Today The IFT has released its fifth Societal Impact report, surveying its members and highlighting that UK corporate distress shows no signs of easing, despite some return to economic stability.
This year, the number of distressed businesses across UK regions has risen by nearly 10% on average, representing a staggering 60% increase since 2017.
Despite the challenges, IFT members have delivered significant positive outcomes for UK businesses in 2024, directly contributing to the greater resilience of UK plc. Key findings are:
- £3.1 billion in added shareholder value generated by independent members.
- 56,000 jobs were safeguarded, enabled by independent turnaround expertise, a slight increase over the previous year.
- Over 80% of IFT members report activity levels comparable to or busier than in 2023.
- Nearly four-fifths (78%) of members expect further growth in turnaround activity in 2025.
Looking at service hotspots, the majority (61%) of IFT members continue to focus on business transformation as a key area of their work, supporting businesses to adapt, transform and succeed in the longer term.
Despite a decline in insolvency rates since 2023, distress remains pervasive, with nearly half (46%) of IFT members forecasting an increase in company failures due to the current operating environment. Key challenges contributing to this outlook include servicing high levels of debt, the depletion of working capital and difficulties accessing further funding.
IFT members consider that the biggest challenges for distressed but viable companies in the coming months will be internal ones, such as board bandwidth or fatigue (40%) and the depletion of working capital (37%).
When asked why businesses in distress fail to seek support at an early stage, 81% continue to cite cultural and psychological resistance to external advice as the primary barrier. This was closely followed by a lack of awareness of difficulties (62%) and understanding regarding the turnaround process.
The report includes sections looking in more detail at particular business challenges, such as accessing funding, and sectors – construction and consumer-facing industries, as well as Part 26A Restructuring Plans. A link to the full report can be found here.
