AS the country enters the second three-week period of lockdown, the growing economic cost of the coronavirus pandemic is outlined in the latest figures from insolvency firm Begbies Traynor.

The first quarter of 2020, factors including the pandemic have left more than 1500 businesses across Bournemouth in ‘significant’ financial distress.'

Bournemouth saw a two percent increase in the number of businesses (1576) struggling between last quarter of 2019 and the first three months of this year, an increase of one percent on the same period in 2019.

The Red Flag Alert data for January to March, which monitors the financial health of UK companies, reveals that nationally, 509,000 UK businesses are in significant financial distress with bars and restaurants, construction, real estate & property businesses and retailers particularly badly affected.

The data also showed that small and medium-sized enterprises have seen the biggest impact.

Of the 509,000 in distress, 504,000 are businesses with under 250 employees.

Despite the relatively stable picture in Bournemouth, businesses in some sectors faced greater financial difficulty than others, including health and education and real estate and property, increasing eight percent and six percent respectively the last two quarters.

And even though some sectors performed more positively – including support services and retail – many businesses will be bracing themselves for the full impact of the coronavirus crisis in the next quarter.

Julie Palmer, partner at Begbies Traynor in Bournemouth said: “The coronavirus pandemic is a true ‘black swan’ event that has decimated short term business financial performance.

" Although it is still early days and with no end to the lockdown in sight things could get much worse, with the Red Flag research highlighting landmark levels of financial distress already.

With many SMEs yet to access government funding, many will simply run out of cash, particularly with the April pay run approaching and payment for furloughed staff still outstanding.

“We hope that the concerted effort made by the Treasury to stand behind businesses through its package of measures proves to be successful so that the Bournemouth business community and, ultimately the UK economy can withstand the huge pressures placed upon it during this time.

“Those businesses with strong balance sheets and access to funding will be able to reorganise their operations and survive the financial shock of this pandemic, while others will unfortunately not have the resources to carry them through this emergency.”