The number of companies in critical financial distress has been driven by a 51% increase in the construction sector and a 42% rise among bars and restaurants.

The research, conducted by the restructuring firm for the last 15 years, found that businesses in significant financial distress was down 20% from the 723,000 seen a year ago to 581,596. However, the figure remains similar to last quarter’s figure of 589,168.

County court judgements (CCJ), which are a warning sign of future insolvencies, were up 157% to 22,552 in the quarter compared to the 9,377 reported in the same period last year.