More than a fifth of British businesses are not confident they can weather a looming recession, said a study published by wealth management, accounting and consulting firm Evelyn Partners. 

Almost half of the firms recognise there is a likelihood they could face bankruptcy or insolvency in the coming months with 15 per cent saying that such an outcome looks highly likely, according to research of 501 UK business owners with revenue in excess of £5 million (S$8 million). 

Soaring inflation, rising borrowing costs and a weaker pound continue to pile pressure on British companies. UK firms now have the highest level of distress among corporates in major European economies, said a report published this week by law firm Weil Gotshal & Manges.

Merger and acquisition (M&A) activity has also taken a hit in the current economic climate. One in five business owners have already postponed or pulled out of M&A activity, while a further 48 per cent are thinking about doing so, said the Evelyn Partners report published on Thursday (Oct 6).

Meanwhile, a quarter of business owners have already refinanced their debt, while a further 43 per cent are considering doing so, the survey showed.

Evelyn Partners said research of the business owners was conducted by Censuswide from Sep 9-14. Bloomberg

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