Latest Business News
22nd October 2019.
James Salmon, Operations Director.
INDUSTRY
Accountants falling behind on diversity, FRC warns
A new report by the Financial Reporting Council (FRC) has warned that the accountancy and audit profession is lagging behind business in the diversity of its senior management. Women make up 46% of manager roles at audit and accountancy firms but just 17% of partner roles, the report says, and at smaller firms – with less than 200 employees – 52% of manager roles and just 11% of partner roles are held by women. The proportion of female partners at PwC, EY, Deloitte and KPMG in Britain is 21%, 22%, 21% and 19%, respectively, while the firms’ respective proportions of black, Asian and minority ethnic partners stands at 9%, 11%, 5% and 8%. The FRC has urged firms to “take rapid action to address this gap and report on their progress”. The regulator’s chief executive Sir Jon Thompson said: “While it is encouraging to see more firms implementing diversity and inclusion strategies and more women, ethnic minority groups and disabled people being appointed to middle management roles, more needs to be done to ensure the firms are not limiting access to the most senior roles.” Sharron Gunn, executive director at the ICAEW, said: “We agree that the senior management of our profession should be diverse and we want to see firms take action for this to happen. As a minimum, we’d like to see all firms collect diversity data to ensure they understand the make-up of their workforce and so they can address any barriers that might exist.”
The Times, Page: 42 Financial Times, Page: 2 The Daily Telegraph City AM, Page: 17 Daily Mail, Page: 68 The I, Page: 39
FIRMS
KPMG launches cost-cutting programme
KPMG has launched a cost cutting exercise, saying an effort to reset its cost base could save £100m. The efficiency drive, known as Project Zebra, comes amid a £200m investment in its audit practice in the wake of a Financial Reporting Council report into the firm’s role as auditor to collapsed outsourcer Carillion. Cost-cutting measures include recalling a number of corporate mobile phones and trimming the number of personal assistants by about a third. KPMG says the measures come as it expands the number of staff in its audit practice, with it hiring 800 additional auditors and 1,000 graduates in 2019. The firm added: “Overall our audit quality transformation programme will see more than £200m invested in people and technology by the end of 2020.”
Financial Times, Page: 14 Financial Times, Page: 12 The Times, Page: 42 The Daily Telegraph City AM, Page: 6
PwC may face legal action over alleged leak
PwC could face legal action over claims related to the leak of highly sensitive information. PwC advised insurer Quindell when it was trying to sell its professional services arm to legal firm Slater & Gordon, with documents presented in a case between Quindell and Slater & Gordon claiming an unnamed PwC partner set up a secret “back channel” to leak details about Quindell’s finances to a representative of Greenhill, the investment bank advising Slater & Gordon. A spokesman for PwC says the firm would “vigorously defend any claim should one be brought”.
Daily Mail, Page: 69
Former EY employee in seminar claim
The Daily Mail reports that EY held a training seminar for female employees in New Jersey during which around 30 female executives were told not to flaunt their bodies because “sexuality scrambles the mind”. Details of the Power-Presence-Purpose event, which was held last year and delivered by outside consultant Marsha Clark, were leaked to the Huffington Post by a former EY employee who had attended. The employee said advice on how to interact with men at work included a suggestion that women shouldn’t directly confront men in meetings or talk face-to-face with them because they see it as a threat. They add that women were advised not to be too outspoken. An EY spokesperson said any “isolated aspects” of the training were taken out of context.
Daily Mail
Begbies Traynor buys agency services firm
Begbies Traynor has bought Ernest Wilson, a firm which provides agency services for the sale of small businesses. Begbies will pay £4m in cash and via the issue of shares, with an extra £1.6m to be paid if certain targets are met.
Yorkshire Post, Business, Page: 2 The Scotsman, Page: 33
Family friendly firms
Deloitte has been named as one of the top UK employers for building flexible, family friendly workplaces. It was named in the top 30 employers by charity Working Families.
Yorkshire Post, Business, Page: 4
First ask whether a robot should be in the kitchen
Deloitte director of Artificial Intelligence Dr Matthew Howard considers the use of the technology, calling for consideration of “whether we are now moving into the realm of AI for AI’s sake.”
Financial Times, Page: 10
TAX
IFS criticises entrepreneurs’ relief
The Institute for Fiscal Studies has told the Chancellor that tax breaks for business owners give the rich an unfair advantage, saying the policy allowed wealth to “accrue disproportionately to those at the very top of the income distribution”. The think-tank also said low rates of capital gains tax on business income did not encourage businesses to invest in the UK. It added that entrepreneurs’ relief costs the government about £2.4bn a year in lost income. The IFS said: “We do not find any evidence that tax-motivated retention of profits translates into more investment in business capital”. It added: “If one of the aims of reduced capital gains tax rates on business assets is to incentivise individuals to invest more in their businesses, this evidence suggests they are not working.”
The Times, Page: 40 The Guardian, Page: 33
Think-tanks question Labour IHT proposal
Ben Harris-Quinney, chairman of the Bow Group think-tank, has questioned Labour proposals for reform of inheritance tax, saying replacing it with a lifetime gifts tax “would tax every significant exchange between family members before death.” This, he added, would mean “birthday gifts, Christmas gifts, and help with buying a first property would all potentially be subject to further taxation.” Tim Focas, director of think-tank Parliament Street, has also commented on proposals set out in the independent Land for the Many report, saying the IHT plan “means anyone trying to pass on a family home or business property will face a massive tax bill.” A Labour Party spokesperson said the independent report “does not constitute Labour Party policy.”
Daily Express
CORPORATE
Wirecard appoints KPMG for independent review of accounting
German payments company Wirecard has commissioned KPMG to review concern over accounting practices that was raised by whistleblowers. KPMG will have “unrestricted access to all information on all levels of the group”
Financial Times, Page: 13
Ashley no longer targeting Goals
Sports Direct has abandoned plans to take control of Goals Soccer Centres, in which it already holds a 19% stake. Mike Ashley’s retailer had been considering a takeover of the firm which has been hit by an accounting scandal that left a £12m black hole in its accounts. However, Sports Direct says it has opted against the move due to poor access and a lack of co-operation from Goals’ board.
Daily Mail, Page: 69
Winding up plans backed
Leonard Curtis ’ plans to wind up collapsed broker SVS Securities have been approved by creditors and clients. Eleven brokers have showed interest in taking on accounts – and Leonard Curtis has narrowed this down to three.
Daily Mail, Page: 68
SMEs
FSB questions BoE call for wider gender pay reporting
Small businesses have questioned a call for gender pay reporting to be widened to companies with just 30 employees. Andy Haldane, a member of the Bank of England’s Monetary Policy Committee, believes there is a “strong case” for extending compulsory reporting of gender pay gaps, which currently only applies to companies with more than 250 employees. Responding to the call, the Federation of Small Businesses (FSB) warned that its members “would be faced with a number of practical barriers, not least where confidentiality is concerned”. FSB chairman Mike Cherry said that while promoting gender equality “is a key priority”, there is “very limited statistical value” in estimating pay gaps in small teams.
The Daily Telegraph, Business, Page: 10
ECONOMY
Pound slips after Brexit vote delay
The pound slipped against the dollar yesterday as currency markets got their first chance to react to MPs backing a move to delay approval of the Brexit deal. Many banks in London had called in extra staff, expecting volatile trading after the first Saturday sitting in the House of Commons for 37 years but the pound’s reaction was muted, slipping 0.6% against the dollar to $1.29, and down 0.4% against the euro. On Friday, the pound had been trading at its highest level for five months. Jeffrey Halley, senior market analyst at Oanda, said the fall in the currency was limited because “a hard Brexit is now highly unlikely”.
The Daily Telegraph BBC News The Independent Daily Mail Daily Express
OTHER
Britain has fourth highest number of dollar millionaires
Credit Suisse’s tenth annual Global Wealth Report reveals Britain has the fourth highest number of dollar millionaires in the world, despite the impact of Brexit on the pound and the softening of the high-end property market. The UK has 2.46m dollar millionaires this year — down from 2.49m last year, but up from 750,000 in 2010. There are a total of 46.8m worldwide.
The Times
HMRC in scam message warning
HMRC has published guidance on the correspondence people may receive from the tax office, advising on how to spot scam attempts. HMRC says it will never ask for personal or financial information in text messages. HMRC’s guidance on phishing emails and bogus messages advises people who receive them to forward the material to a special HMRC phishing email address or phone number before deleting it.
Daily Express
PwC’s purrfect employee
The Times says Graham, a rescue cat employed by PwC to deal with rodents at its London office, is competing with Downing Street cat Larry to be the capital’s top mouser. Graham’s Twitter account describes him as a “Chartered Animal Trapper (CAT)”.
The Times, Page: 42
Do you sell on credit?
With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.
Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.
You can’t just assume your customers can and will pay you eventually, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply on credit, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are extremely passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you realise you could be sitting on a fortune?
Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.
Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your business needed.
But don’t delay, that compensation evaporates if not claimed within six years of the late payment.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.
Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.
CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.
The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
Those former clients who regularly paid you late can finally be made to pay.
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections