In response to worse-than-expected GDP figures released on 23 October 2009, Neil Relph, Location Director for Beaconsfield at Vantis, the UK accounting, tax and business recovery and advisory group, comments:
“The general view amongst colleagues is that we have not yet seen the real impact of the recession thus far and that the recent fall in GDP (by 0.4% between July and September) implies a tough winter ahead for local businesses.
“This accords with what we see in the majority of businesses that we act for in the Thames Valley and Buckinghamshire region. They are experiencing a challenging sale environment, with ongoing pressures forcing down margins, whilst having to cope with historic levels of high debt. Time to pay arrangements entered into with HM Revenue & Customs and low interest rates have eased pressure for some, but not all.
“The convergence of such pressures will require lenders, investors and directors to be even more aware that they must take early action if we are to avoid an increase in the number of local businesses that are forced to close, with the resultant losses to creditors, as well as further increases in unemployment in our region.
“It is important in a recession that clients revisit their business models to verify that the assumptions their plans are based upon remain accurate, to sustain the business. It should also be remembered that there is an opportunity for companies with cash or strong balance sheets to acquire weaker rivals and, through the synergy savings of a combined business, to increase profit margins, thereby repaying the initial costs of the acquisition.”
Vantis also has a dedicated Business Recovery Services (BRS) team operating from locations based across the UK, including Marlow. Successful business turnaround is usually achieved as a result of management confronting their difficulties at an early stage and seeking quality specialist help. As specialists in providing such expert recovery and insolvency advice, our Vantis BRS team is ideally placed to assist and a free consultation is readily available.
Services provided by Vantis BRS include pre-lending reviews, independent solvency & business reviews, corporate insolvency solutions, personal debt solutions, refinancing services, restructuring, banking, investigations, solvent liquidations and creditor services. At a time when many businesses are having to cope with historic levels of high debt, the Marlow BRS team is well placed to provide expert consultancy, drawing on both national expertise and local, region-specific knowledge.
The Vantis BRS team has been able to save many businesses in distress and is experienced in supporting and guiding them through financial difficulties.
For further information, or to discuss any of the points mentioned above, please contact Neil Relph on 01494 675 321. Alternatively, please complete and submit the online form below.