The number of businesses just paying the interest on their debts – a key characteristic of ‘zombie businesses’ – has plummeted from 154,000 in August 2014 to 69,000 now, according to research by insolvency trade body R3. This is the lowest number of businesses in this position since the survey began in June 2012, having peaked at 160,000 in November 2012. Phillip Sykes, President of R3, says: “There has been a dramatic decrease in the number of ‘zombie businesses’ since we began our research." Encouragingly, the findings suggest that businesses are experiencing greater profitability. We are now seeing more companies able to afford to pay off the debt itself and not just the interest.
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