New Year, same problems?
By Jeremy Priestley
If the activities of Insolvency Practitioners are a barometer of the financial state of the region’s businesses, then Sheffield and South Yorkshire has probably fared much better than you might have thought during 2009. The level of business failures of course is very much up on previous years, but it has not been anything like the experiences of the recessions of the 1980’ and 90’s.
In the past decade or so there has been a remix of the regions business, away from metal bashing to high tech/added value manufacturing and to 21st century new technology enterprises. This will have helped to even out the effects of the boom and current bust experience. But still there have been more business casualties than we would wish to see, with the inevitable consequences for those who have lost jobs and creditors who have lost money.
There is another side of this story. There is a very strong suggestion that a new breed of business proprietors seek more support and advice from their professional advisors; they know much more about their business and the dynamics of the market place; they take advice and don’t get into too much trouble. It has been old style proprietor, set in his ways and who never sought advice and the entrepreneur who chanced his arm with a good idea as we hit the down turn, supported by a bank that should have known better, that has suffered the most.
Likewise over the past 10 years or so, at P&A, we have moved into a whole range of new activities that give a joined up approach to business problems. We collect debts, manage debtor ledgers and train and recruit staff to improve collection efficiency so that our clients get paid for their hard-earned sales efficiently and promptly. We source new and alternative forms of finance for clients and we recover assets where necessary.
Because of these changes in the way we operate we now rescue, one way or another, more business than we ‘bury’, saving the business and the livelihood of the proprietors, their workers and at the same time looking after the interests of the creditors.
As to 2010?
We have had a very modest taster of what is about to come in the pre budget report and if the current parliament runs the full term we can expect more of the same in April. The real budget will appear after the general election, when a much fuller picture will be revealed, whoever gets in, and the proper medicine will need to be taken. The concern must be that a combination of higher taxes, higher interest rates, a weakening of sterling, increasing unemployment and the need to get down expenditure and debt, will drag the economy down for many years.
And I haven’t mentioned the EU the impact of its increasing regulation on business life!
Another 'Annus horribilis'? I am afraid you can bet on it.
If you think that your business would benefit from with a financial health check please speak to me on 0114 275 5033.
There is more information about our activities at www.pandagroup.co.uk
| Jeremy Priestley is the Managing Partner of The P&A Partnership and Managing Director of P&A Receivables Services plc. |
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