Mixed messages are abundant right now. For example, when trying to ascertain the health of the construction sector, the following messages have all come out in news reports over the last couple of weeks:
- That there’s an increase in construction firms seeking help from restructuring experts as builders struggle with the soaring cost of materials.
- That there’s an increase of companies in “critical financial distress”. Begbies Traynor’s latest Red Flag Alert report that this has increased by 37% in the past year, with construction groups among the hardest hit.
- That UK housebuilding activity has returned to pre-pandemic levels, according to industry body, the National House Building Council (NHBC).
Could all these reports be true simultaneously?
Of course they can, given the financial crisis currently affecting the UK economy.
Furthermore, it’s likely that many industries, not only construction, are being hit by this seeming paradox.
It is not looking as though things will get better any time soon, and the stress and strain this puts on the mental health of CEOs, business owners and boards is considerable.
Our message is: look after your mental health whether it is taking time out for a walk in nature or talking to someone about your worries.
That’s where K2 comes in.
Tony Groom has a wide range of experience ranging from acting as CEO and CRO (Chief Restructuring Officer) of AIM listed companies including the turnaround of a regulated investment company; through to smaller SMEs with turnovers of below £1m.
We specialise in offering practical help to businesses in trouble, among them in construction, to help them to restructure if that proves to be the best option.
The first step is to book a free strategy and viability review with us to talk through your situation.
You can find out more here.