UK companies facing second-highest level of financial ‘distress’ in Europe

The Weil European Distress Index has shown failing profitability as the main driver for business distress across the continent.

UK companies are experiencing the second-highest levels of financial distress in Europe, with German firms leading the way.

European businesses are struggling to balance increasing expenses with the need for continuous production, the research found.

Many companies have indicated they will have to reduce prices in a bid to maintain sales volumes.

The European real estate sector is facing challenges such as high interest rates, falling valuations, elevated energy and construction costs, and increasingly expensive financing – cementing it as the “most distressed sector” in the index.

Meanwhile, the healthcare sector is the second-most distressed sector due to interest rate burden, poor investment performance, and rising operational expenses.