Manufacturing output climbs – business news 4 August 2020.
4 August 2020.
James Salmon, Operations Director.
Manufacturing output climbs, announcement of the Getting Building Fund, call to allocate unspent grants, office staff resent home workers, furlough fraud, Covid-19, markets, another high profile insolvency, brexit, china, tax and a lot more news.
Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.
Manufacturing output climbs in July
IHS Markit, a research firm, reported the IHS Markit/Cips UK manufacturing PMI for July has revealed that manufacturing output grew at its fastest rate in nearly three years last month.
The index scored 53.3, up from 50.1 in June, on a scale where anything above 50 points to expansion. IHS Markit hailed “a positive start to the recovery,” while warning that “it will take several months of growth to fully recoup the output lost since the start of the pandemic.”
Duncan Brock, group director at the Chartered Institute of Procurement & Supply, commented: “With a ravaged economic landscape it will be a slow train to recovery, managing the ebbs of flow of potential disruptions to come.”
An increase in demand after the easing of covid-19 restrictions led manufacturing activity in the euro zone to also expand for the first time since 2019. IHS Markit, reported that its manufacturing purchasing managers’ index for the Eurozone rose from 47.4 in June to 51.8 in July. Still below the UK figure.
Getting Building Fund
The UK Government has announced more than 300 projects which will share a £900 million investment to build homes, infrastructure and create jobs as part of the country’s economic recovery from coronavirus. The successful projects in England will receive a portion of the £900 million Getting Building Fund, announced by the prime minister in June, with the investment expected to deliver up to 45,000 homes, create up to 85,000 jobs and reduce around 65 million kilogrammes of CO2 emissions across the country.
Ministers urged to give firms unused grant pot
The Institute of Directors (IoD) and the Federation of Small Businesses (FSB) have called on ministers to reconsider plans to reclaim close to £1.6bn of unspent coronavirus grants, urging the Government to instead direct the money to firms that have not received support.
Business Secretary Alok Sharma has told local authorities to return unspent funds to the business department when the schemes close at the end of next month.
The FSB believes “unallocated business support funds should be repurposed, to help businesses in need that have been excluded”, while Tej Parikh, chief economist at the IoD, said: “This funding has been earmarked to help struggling small businesses. It would be deeply frustrating to see it evaporate, particularly when many firms are in need.”
Office staff resent home-workers
HR professionals have warned that staff who have continued to go into the office during the coronavirus pandemic resent their colleagues who work from home, with some launching grievance procedures against their employers.
Katie Jacobs of the Chartered Institute of Personnel and Development said the workplace had been “fractured” by the pandemic. “At the beginning, the attitude was ‘we are all in this together’, but as time goes on that has dissipated,” she said, adding: “Employers were pleasantly surprised that there was a lot of kindness, but that seems to have disappeared and now people are tired, burnt out and fed up.”
Furlough fraud cases hit 7k
HMRC data show that cases of furlough-related fraud have risen to almost 7,000. Figures show that examples of abuse of the Government’s Coronavirus Job Retention Scheme stood at 6,749 as of July 22.
Tax barrister Patrick Cannon believes the tax office will continue to crack down on fraud, even when the scheme concludes, saying: “HMRC will definitely be pursuing cases. I believe there will be a lot of routine enquiries opened into payments even after the scheme ends.”
He expects there will be random checks on companies and believes that over time “it will really come home to roost how much money has been paid out, and it will be easy for the Government and HMRC to fall into the mindset of raking back as much money as possible paid in breach of the rules.”
Fraud warning in wake of virus
KPMG ‘s bi-annual Fraud Barometer, which measures fraud cases with losses of £100,000 or more reaching the UK courts, shows that only 76 cases of alleged fraud were heard in the courts in the first half of 2020, down from 217 cases prosecuted during the same period last year.
This 65% decline has been attributed to the significant impact of the COVID-19 crisis, which led to the closure of many courts. The report suggests financial pressure brought about by the pandemic could prompt a wave of fraud cases.
KPMG’s Roy Waligora, said: “The COVID-19 environment has led to increased financial pressures on individuals and organisations leading to more opportunities to commit fraud.” “This is likely to lead to further risk of financial misreporting and of misconduct and fraud in traditional hot spots such as procurement and supply chain,” he added.
Covid-19 general news
Global cases passed 18.2 million and deaths passed 694,000
A global study by Harvard and NYU has shown that those working through Covid are working 48 minutes more per day than they were before with more meetings and email. Those working at home on average logged 3 additional hours a week but were working at odder hours as they juggled home and work responsibilities.
The Government has extended its Help to Buy scheme due to construction delays during the virus pandemic. The deadline for homes to have been finished in order to comply with the equity loan scheme has been extended from this December to 28 February 2021.
The government signed deals for fast Covid-19 testing kits, aiming to provide tests with a 90-minute turnaround to hospitals and care homes in time for an expected winter second wave of cases. Britian has already secured the highest number of potential vaccine doses per capita, ahead of the U.S., having signed a deal with GlaxoSmithKline Plc and Sanofi for as many as 60 million doses.
Kosovo’s Prime Minister was the latest European leader to self-isolate after contracting the disease.
Covid-linked deaths in Iran may be triple the official tally, the BBC reported, while experts warn that India hasn’t properly recorded fatalities.
Germany and Poland are seeing an increases in new cases and the Philippines hit a records.
Markets.
The FTSE 100 moved back above 6,000, gaining 2.3% to 6032 with the European stoxx 50 also climbing 2.3% as investors took the view that recent declines have provided buying opportunities. In the US the S&P climbed 0.7% and the NASDAQ was up 1.5% as Apple shares notched strong gains. The index in fact touched a record as traders sought out names poised to do best in a stay-at-home economy. Apple Inc. reached an all-time high briefly and Microsoft Corp. gained as it tried to negotiate a deal for the U.S. operations of political football, TikTok.
Gold prices slipped back $4.40 to $1972.70 per ounce. Oil prices steadied as rising virus cases and oversupply worries fuelled by the prospect of OPEC winding back output cuts were offset by positive industry data in Europe and Asia.
The pound is in retreat against most currencies, down to 1.107 Euros and 1.306 US dollars.
DW Sports administration puts 1,700 jobs at risk
Sports retailer and gym group DW Sports has fallen into administration, with 1,700 jobs at risk. The company, which operated 73 gyms and 75 retail sites, announced plans to shut 25 of its stores last month. The rest are expected to trade under administration for as long as stock is available in the hope of finding a buyer. CEO Martin Long said the coronavirus lockdown had left the chain with “a high fixed-cost base and zero income”. Administrator BDO said its aim is to try and sell as “much of DW Sports’ business as can be achieved.”
Brexit
The European Union is reportedly willing to soften its demand that Britain follow EU state aid rules after it leaves the bloc, in order to break the current Brexit impasse. Brussels may be seeking a compromise involving a dispute-settling mechanism on state aid in order to resolve the Brexit deadlock.
China
Despite covid and the trade war, China’s Manufacturing Industry improved at the quickest pace in nearly 10 years and notched up a third successive month of growth, as the country’s economy continued to bounce back from coronavirus. Caixin’s PMI improved to 52.8 in July from 51.2 in June.
Number of landlords found underpaying tax halves
The number of landlords found to have underpaid on their tax bills more than halved last year, with HMRC identifying 7,362 landlords who had underpaid or not paid income tax in 2019/20, marking a 55% decline on the 16,318 recorded the year before. The figures show that while 2018/19 saw £47m clawed back from landlords, buy-to-let owners paid back just £31m last year. Zena Hanks of Saffery Champness, which obtained the data under the Freedom of Information Act, suggests that ministers will look to ramp up efforts to uncover those underpaying taxes as they attempt to rebalance the books to cover the cost of the coronavirus crisis. She said: “The Government is faced with the task of paying for the surge in public spending generated by the COVID-19 relief measures, and maximising tax compliance will be a critical step towards this goal.” Meanwhile, analysis of HMRC’s Let Property ca mpaign, which encourages landlords to voluntarily disclose anything they owe, shows that since its launch in 2013, 58,779 people have made voluntary disclosures, paying back a total of £163m. These figures represent just 4% of the people HMRC estimates have underpaid, with the money pulled in less than a third of the total the tax office calculates is owed.
Stamp duty change helping the well-off
Lifting the threshold for stamp duty to £500,000 had an almost immediate impact, according to data agency TwentyCi. The number of property sales agreed in the second week after the threshold was lifted was 58% higher than the weekly average in the same month last year. However, experts have expressed concerns this is shifting focus away from first-time buyers. More than double the number of sales for homes priced between £500,000 and £1m were agreed after the cut came in, compared with the same period a year earlier, while the proportion of homes bought by buy-to-let investors has risen to 6%.
Yorkshire firms invest amid pandemic
A BDO poll shows that more than a quarter of businesses in Yorkshire have launched new products and services, or invested in new technology during the coronavirus pandemic, while almost a fifth have acquired another business.
HSBC ignores computer modelling
HSBC says it opted to overrule computer modelling that predicted significantly higher levels of borrower defaults than its managers and credit experts thought likely. The bank said its computer modelling had produced credit loss projections that were “outside the historical observations on which IFRS9 models have been built … to operate”. CFO Ewen Stevenson, who said the decision had reduced the level of expected credit losses reported, noted that the Prudential Regulation Authority and PwC, the bank’s auditor, had been closely involved in the decision.
Don’t let Covid-19 bust your business!
It will if your cash flow dries up, either sooner or later.
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for sometime to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.
To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.
- The annual package costs start at very low rates
- A minimum performance warranty is provided
- Several complimentary services included
Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).
A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?
Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.
It takes less than 17 minutes to see how you would benefit, do you have the time now?
No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
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 your 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.
You might be hesitant about contacting a debt collection agency. What are they going to be like?
Can they help your particular type of business?
There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.
Debt collection agencies are not all alike.
Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!
At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.
The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.
We are polite, firm and efficient when it comes to recovering outstanding debt.
“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire
“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington
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