A report has claimed that more than a third of Welsh technology and IT businesses are at increased risk of insolvency in the next 12 months.

Insolvency trade body R3 said 35 per cent could go out of business.

That figure was equivalent to the UK average but far higher than the percentage of all Welsh firms which are at risk – 22 per cent.

“While the Welsh digital economy is deemed by many to be the fastest growing outside of London, it’s not unusual to have high levels of instability in the sector," said Alan Bennett, regional chairman of R3 in Wales and partner at Ashfords.

"It’s easy to enter the market but many tech businesses can struggle with financial planning and growth in the longer-term.

"Following the decision by the UK to leave the European Union, there may be worries for the tech sector not least due to doubt around external funding for projects and incoming business investments."