The IFT Quarterly Update Q2 2024: steadily increasing turnaround activity as businesses deplete working capital

Our Q2 2024 update on turnaround and restructuring activity across sectors shows a picture of steadily increasing activity, with half of IFT partners surveyed seeing an increase in activity, and the rest about the same level of activity. The busiest sectors in terms of turnaround and restructuring continued to be real estate and construction. The depletion of working capital was the most commonly cited factor driving business distress, whilst the pressures of inflation and the costs of servicing debt remained substantial. 50% of IFT partners surveyed also highlighted the withdrawal of shareholder support/funding as impacting businesses over the last quarter.

The quarterly data from FRP Advisory showed another slight increase in the number of businesses experiencing distress compared to Q1 2024.  Construction featured as the sector with the highest number of insolvencies in Q2 2024 (as it had in Q1), as well as in the top three sectors experiencing the highest levels of distress.

You can read the full update here.