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'Zombie' firms are surviving but not thriving

SCOTTISH and Northern Irish businesses are showing greater signs of "distress" than those in any other part of the UK, a survey by insolvency trade body R3 reveals.

John Hall, Scottish council member with R3, warned of "zombie" firms which were surviving rather than thriving, as he highlighted the difficult economic outlook.

The quarterly survey revealed that 43% of businesses in Scotland and Northern Ireland were suffering decreased profits, compared with 34% in the UK as a whole.