In response to worse-than-expected GDP figures released on 23 October 2009, Nick Paterno, Location Director for Sidcup 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 Kent and South East London area. They are experiencing a challenging sales 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.”
For further information, or to discuss any of the points above, please contact Nick Paterno on +44 (0)20 8309 0011. Alternatively, please complete and submit the online form below.