Compass Group, Galliford: Should you pick these FTSE stocks now?

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Highlights

 

-The number of financially distressed companies is rapidly increasing in the UK.

-The worst-hit sectors amid rising costs are hospitality and construction.

-The number of UK companies facing critical financial distress went up by 19% in the first quarter of 2022, as per Begbies Traynor’s recent report.

The number of financially distressed companies is rapidly increasing in the UK. As the labour and material costs are soaring and Covid loan repayments are due, pressure is mounting on the already struggling companies which are at the risk of collapse. As per the recent report by insolvency firm Begbies Traynor, the worst-hit sectors amid rising costs are hospitality and construction.

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The UK Government claims that companies were provided with all the necessary support and enhanced flexibility for the repayment of the Covid loan, but the recent report says that there should be an extension in the schedules for loan repayment. According to the new report, the number of UK companies facing critical financial distress went up by 19% in the first quarter of 2022, in comparison with the same period last year.


 

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