Zombie companies to be wiped out by inflation crisis

Expected to come to an end over the next 18 months or so, until now these businesses have been kept alive because of cheaper borrowing costs.  

Speaking to Bloomberg, Traynor said his business had seen an increase in activity for smaller companies last year because “they tend to be the first ones that are hit when there’s a problem”. He added: “We’re now moving into mid-market companies.” 

Insolvencies in England and Wales have risen toward levels last seen in 2009, with companies in construction, retail and hospitality – according to Traynor – being particularly vulnerable in the coming months.  

The interview came as Begbies Traynor published its yearly results, with the company delivering double-digit revenue growth over the 12 months to April 30, increasing from £110m to £121.8m. Its profit before tax figures, meanwhile, went from £4m to £6m.