A recent study conducted by Begbies Traynor suggests almost half a million businesses are now facing “significant financial distress” following the EU referendum 3 years ago, a hike of 40% in the same period.
We have undoubtedly seen a number of very high profile businesses suffering significant and critical financial distress – in the last few months we’ve witnessed the fall of one of the world’s oldest travel companies Thomas Cook and one of the UK’s largest steelmakers, British Steel, whilst the news has been awash with stories of highstreets in decline and restaurant chains such as Byron Burger, Pizza Express and Jamie’s Italian undergoing significant restructures. The retail, property and construction industries have also suffered considerable financial challenges, a trend which has rippled throughout many sectors as consumer and business confidence drops and discretionary spend decreases.
And given the national and international economic and political backdrop, it’s no wonder why. As another Brexit extension is granted, it would be realistic to say that nobody really knows what the state of play will be following our departure from the EU – which continues to be a major concern for many businesses, understandably stifling their growth and hampering confidence.
However, some sectors remain generally unaffected by the result of the referendum. As a heavily service-orientated nation, it’s no surprise to see that Fintech and Digital industries continue to flourish in the UK amid uncertainty, whilst sustainable industries such as Biotechnology continue to grow considerably, causing a shift in the economy and jobs market.
Although uncertainty continues to pervade the UK economy, there are steps that you can take to future proof your business and proactivity is key. By being one step ahead, businesses are better suited for adapting to environmental, economic and political changes, ensuring longevity and adaptability, and cash remains king in this situation.
If you are facing any financial challenges, or would simply like some advice, please do not hesitate to get in touch with a dedicated member of our award winning Business Recovery and Insolvency team today.
As a member of The Institute of Chartered Accountants in England and Wales (ICAEW) we have access to pre-eminent resources and world leading advice for individuals and business owners.
By recognising distress signs early in the decline curve, assessing ways in which to minimise the impact of both internal and external confounding factors, and initiating methods to secure the best future for your business, our experts strive to avoid formal insolvency processes occurring.
We encourage any individuals or business owners to seek professional advice early, so as to ensure the most successful outcome possible, time often being of the essence. If you would like to discuss your current financial situation and options available, please do get in touch for a confidential, no obligation discussion today.