The number of firms facing County Court Judgements of £5,000 or more or wind-up petitions in the first quarter of this year increased by almost 90% compared to a year ago, according to research by Begbies Traynor.

The research also revealed a 60% increase in the number of companies that faced court action, or had insolvent or out of date accounts. The total number of firms showing signs of stress rose to 84,648 in March this year from 53,240 a year ago - a rise of 59%.

"Regrettably, experience tells us that company and personal insolvencies, like unemployment, are a lagging indicator, and are therefore likely to continue to rise through the recession," said Begbies chairman Ric Traynor.