The Times has reported on research from trade group Make UK and RSM accounts that around 40% of British firms surveyed reported they were close to tipping into a financial crisis or insolvency.
The reasons given included debt and rising costs. Prices from manufacturers of animal feed for agriculture has seen inflation over 20% according to an investigation by Private Eye while The Times also reported that input costs for half the businesses surveyed were up 20%.
The newspaper reported: “As the latest producer prices index showed input costs up 13 per cent for manufacturers in October, against 11.9 per cent in September, a rise of that magnitude was ‘very much plausible’, especially with the combination of increases in taxation, raw material, shipping and energy costs, ‘Make UK’ said.”
It went on to say that: “Supply chain disruption and staff shortages could prove the ‘tipping point’ for businesses under strain, as customers and suppliers cling to cash or change their payment terms, according to research from Make UK, the trade body, and the accountancy firm RSM.”
Ian Carrotte of ICSM said the findings reflected the views of many of the members of ICSM’s business intelligence group with so many clients of firms admitting they were in trouble.
He said: “The restrictions brought in by the Government to combat the Omicron variant of Covid 19 will further hit business as people stay away for their offices, the night time economy is hit and spending is curtailed. We need to live with the virus and its various versions not run away and hide as commerce is being hit from all sides – HGV shortages, worker shortage in many industries, the issues over the Brexit trade deal and debt built up over the last two years.”
The Times reported that 40% of manufacturers had, “…engaged restructuring and insolvency professionals or intended to within the next 12 months, either out of necessity or as a precautionary measure.”
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ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel – while at the moment there’s a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach – ask for details from Paul.
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk