Red Flag A!ert Statistics

Begbies Traynor Group PLC
30 January 2008


Wednesday, 30 January 2008

      Begbies Traynor's Red Flag A!ert Statistics Signal Tough Times Ahead

Begbies Traynor, the UK's leading business rescue, recovery and restructuring
specialist, today publishes its quarterly Red Flag A!ert statistics, which
monitor adverse actions and other corporate distress signals (such as the issue
of county court judgements and wind up petitions). These show that the number of
UK companies facing significant difficulties has increased substantially over
this time last year.

The survey monitors the numbers of companies experiencing difficulties in two
categories: 'Significant Problems' * and 'Critical Problems' **. Of those
companies experiencing the more serious 'Critical Problems', Red Flag's research
shows that approximately 15% will enter into a formal insolvency procedure
within 12 months.

All eight of mainland Britain's regions showed an increase in Critical Problems.
Comparing quarterly averages of companies with Critical Problems, the region
experiencing the greatest increase in 2007 was the West Midlands, up 43.1% on
2006, while the smallest increase was in the North West, with 15.3%.

The full list is as follows:

Region                                                  % Increase in Critical
                                                              Problems in 2007
West Midlands                                                             43.1
South                                                                     32.6
North East England                                                        25.3
Scotland                                                                  23.0
South East England and East Anglia                                        22.0
South West England and South Wales                                        18.0
East Midlands                                                             16.1
North West and North Wales                                                15.3

The average increase of companies facing Critical Problems for all regions
during 2007 was 23% up on 2006; this represents a total of 5,159 companies
compared with 4,201 in 2006.

Companies showing minor distress indicators across all regions totalled 426,023
in 2007 compared with 375,493 in 2006, an increase of 13%. This compares with a
figure of 31% for the previous year, further evidence that the insolvency market
had stabilised during 2007, as indicated in last years Insolvency Outlook report
from Euler Hermes.

Much of the increases in adverse actions occurred in the final quarter of 2007.
This concurs with the Bank of England's Fourth Quarter 'Credit Conditions
Survey'. The survey showed a deepening of the current 'Credit Crunch' with
lenders reporting that credit availability had reduced significantly during Q4
and that defaults by medium-sized PNFCs (Private Non-Financial Corporations) had
also risen, in line with lenders expectations in Q3.

Ric Traynor, Executive Chairman of Begbies Traynor Group, commented:

'The combination of adverse economic conditions in the final quarter of 2007 has
clearly had a major impact on credit conditions, with a significant reduction in
credit availability and an increase in defaults. This trend is expected to
continue into this year and will undoubtedly lead to reduced lending, which in
turn could push more companies into insolvency over the coming months.'

* Companies with 'Significant Problems' are those with either a court action and
/or average, poor, very poor insolvent or out date accounts.
** Companies with 'Critical Problems are those with CCJs totalling £5,000 or
more and/or Wind-Up Petition related actions

                                      Ends

For further information, please contact:

Begbies Traynor Group plc                       www.begbies-traynor.com
                                                --------------------------
Ric Traynor, Executive Chairman                 0161 837 1700

Smithfield
Reg Hoare / Katie Hunt / Will Henderson         020 7360 4900




                      This information is provided by RNS
            The company news service from the London Stock Exchange