Latest Business News
21st October 2019.
James Salmon, Operations Director.
FIRMS
PwC accused of conflict of interest over Thomas Cook
PwC has been accused of a conflict of interest for advising Thomas Cook on pay and bonuses while working as the collapsed travel firm’s auditor. While PwC audited Thomas Cook’s accounts between 2008 and 2016, its accounts show that between 2007 and 2012 it earned £4m providing “recruitment and remuneration” advice to the firm’s executives. An unnamed head of audit at a rival accounting firm told the FT that this represented a “clear conflict” of interest, while a board member at another accounting firm commented: “Providing remuneration advice to audit clients is not allowed now for good reason.” A PwC spokesperson told City AM the firm stopped advising Thomas Cook’s remuneration committee in 2009. They added that the non-audit work as advisers “was approved in advance by the audit committee, complied with all relevant regulatory standards, and was disclosed in the company’s annual reports.” Meanwhile, representatives from PwC and EY will face questions from the Business, Energy and Industrial Strategy Committee over their work for Thomas Cook tomorrow, with the Guardian saying MP’s will “grill” PwC bosses over the possible conflict of interest. The Financial Reporting Council is investigating EY’s 2018 audit of the travel company, saying it will keep the scope of its investigation “under close review”.
Financial Times, Page: 11 The Guardian, Page: 25 The Times, Page: 42 The I, Page: 40 City AM
TAX
IFS boss: Labour plans likely to push up taxes
Paul Johnson, the director of the Institute for Fiscal Studies (IFS), has said that spending plans outlined by Labour are likely to lead to higher taxes for those on average incomes. In an interview with City AM, he points to the party’s plans to renationalise railways, water and energy companies, and Royal Mail, noting that evidence from other countries suggests the spending necessary for such moves is usually funded through higher taxes. “That’s what you’d probably have to do,” he commented.
City AM
SMEs
FSB urges Chancellor to deliver rate reform
The Federation of Small Businesses (FSB) has called for business rates reform, urging Chancellor Sajid Javid to help smaller firms hit by Brexit uncertainty with new measures in next month’s budget. The FSB wants the Retail Discount – which allows retailers whose property is worth up to £51,000 to claim a 33% discount on their rates bills – to be increased to 50%, made permanent and extended to small firms operating in other sectors. The body is also calling for the threshold for small business rates relief to be increased from £12,000 to at least £30,000. FSB chair Mike Cherry commented: “We need to see the Chancellor step up to the mark next month with measures that will reinject optimism into the small business community and enable growth. Otherwise, we’re in for a very bleak winter.”
The Times, Page: 42 Daily Express, Page: 47 The Independent, Page: 13 Daily Mirror, Page: 4 The I, Page: 38 Daily Mail, Page: 75 The Scotsman, Page: 34 Yorkshire Post, Page: 17
CORPORATE
Bell settles claims with liquidators
The Guardian reports that City investor Paul Bell, who was arrested in 2015 in connection with an alleged £21m tax fraud, has secretly agreed to settle claims of £67m with the liquidators of his former companies. Documents relating to the liquidation of his former businesses filed at Companies House by the insolvency firm RSM show deals were agreed in May. The filings point to claims of £67m which could be pursued against Mr Bell, noting that following mediation, all claims against Mr Bell and the underlying dispute “were compromised by way of a confidential settlement agreement”.
The Guardian, Page: 25
Private deal value trebles
The value of private equity deals taking UK-listed companies private has more than trebled over the past year, analysis by BDO shows. The total valuation of deals taking UK-listed firms off the stock market rose to £14bn in 2018/19, marking a 278% increase on the previous year’s total of £3.7bn.
City AM
PROPERTY
Property listings dip
Figures from Rightmove show that the average number of new property listings each week this month has been 24,539, the lowest October figure in a decade and down 13.5% on last year. The figures also show that the price of property coming to market has seen its lowest monthly rise in an October since 2008, climbing 0.6%. The number of sales agreed in October is down 0.5% year-on-year. Rightmove’s Miles Shipside said a “Brexit-induced paradox” means it is a good time for sellers, saying: “Those who are ignoring the Brexit disruption have less competition from stay-away sellers, and their prospective buyers have less negotiating power, with a reduced choice of suitable alternatives”.
City AM
PERSONAL FINANCE
Seaside sees the most insolvencies
Analysis by UHY Hacker Young shows that seaside regions dominate a list of areas with the highest levels of bankruptcies in the past year, with Scarborough, Torbay, Plymouth, Hull and Blackpool all in the top ten. Peter Kubik, a partner at UHY Hacker Young, commented: “People in seaside towns continue to fall into bankruptcy as the coastal economy fails to keep up with the rest of the country. Many are in need of further investment.” Overall, Stoke saw the most personal insolvencies in 2018 with just over 51 per 10,000 adults compared to a national average of 25.
Daily Mirror, Page: 7 The I, Page: 2 The Guardian, Page: 28 Yorkshire Post, Page: 1
EMPLOYMENT
Employers back mental health at work scheme
Thirty large employers have signed up to the mental health at work commitment, a promise to improve the standards of mental wellbeing among the workforce. Deloitte is among those which have agreed to adopt six standards which have been developed with mental health charities, large employers and trade organisations. In a letter to the Times, signatories to the scheme say: “If every employer in the country signed up and took action, we could have a meaningful impact on millions of employees across the UK”.
The Times, Page: 45
ECONOMY
King: UK neglecting economic challenges
Former Bank of England (BoE) governor Lord Mervyn King has warned Britain is failing to address problems with the economy because there is too much focus on Brexit. Speaking on the fringes of the International Monetary Fund’s annual meetings in Washington DC, the former BoE boss said: “We’re not looking at the underlying economic challenges for the UK.” He also suggested that opting to exit the EU is “not likely to have a major impact on the UK economy in any way,” suggesting: “there’s an awful lot of bogus quantification going on to justify positions held for other reasons.” Lord Mervyn also pointed to the risk of a “great stagnation” that could hit the global economy and leave incomes “paralysed.”
Sky News The Daily Telegraph, Business, Page: 1 The Independent, Page: 7 The Sun, Page: 9 The I
Consumer confidence slips
The latest consumer tracker by Deloitte shows weakening consumer confidence, with a reading of -9% in Q3. This marks a one percentage point dip on Q2 and a two point year-on-year decline. Confidence in job security fell three percentage points year-on-year to -8%. Deloitte’s measure gauging overall confidence in the state of the British economy generated a net balance of -55. Ian Stewart, chief economist at Deloitte, said: “A decline in consumer confidence this quarter, combined with a fall in official unemployment figures, show that the period of remarkable resilience in jobs and earnings is coming to an end.”
The Times, Page: 43 The Scotsman, Page: 34
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
Keep up to date with the latest news by following us on social media:-
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections