The financial health of London businesses is lagging behind the rest of the UK following the vote to leave the European Union. According to research, in most areas of the UK the number of businesses suffering critical difficulties fell in the three months after the EU referendum, but for London the number rose 6.6 per cent in the same period, from 467 to 498.
While the number of companies in significant financial distress fell 6 per cent nationwide, the figure in London was down just 4 per cent.
Adding to this, the latest Global Business Monitor shows that confidence dipped slightly among UK SMEs after the vote to leave the EU, but it rose in the Republic of Ireland, Germany and Poland.
The survey, which consulted 1,200 SMEs in Britain, Germany, Hong Kong, Ireland, Poland and the United States, found that smaller companies in the UK were anxious about their growth prospects as a result of cashflow concerns and rising costs.
In light of the current economic instability, businesses must put measures in place to adapt to market changes. Businesses must also keep a constant lookout for risk factors in their own businesses and in their supply chains, which could mean the difference between success or failure. By recognising and acting on these warning signs at the earliest possible opportunity will enable you to re-evaluate, improve and where necessary restructure your personal or business’ financial affairs.
Our SME business experts at Beavis Morgan are available to structure your business with cashflow and profit forecasting to provide timely information, measure performance and maximise opportunities. We work to a pre-determined plan, to help you avoid any nasty surprises.
In turn, if you have any concerns about your personal financial situation or that of your business, our specialist insolvency, recovery and advisory partners at BM Advisory can assist with resolving issues which can impact on business performance and success, and find innovative solutions for businesses and individuals in distress.