Business news 2 October 2024

Manufacturing growth slows. Cyber incidents a major worry. Water bills set to soar for small businesses. Government urged to combat fraud epidemic. Tips, Covid Grants, Billionaires, pensions, markets, insolvencies & more business news that we thought would interest our members.

James Salmon, Operations Director.

Manufacturing growth slows amid uncertainty

The UK’s manufacturing sector experienced a slowdown in growth, with the S&P Global UK manufacturing PMI survey recording a reading of 51.5 for September, down from 52.5 in August. Despite factory output rising for the fifth consecutive month, confidence has plummeted to a nine-month low, with Rob Dobson from S&P Global Market Intelligence noting: “Manufacturers have become more nervous about the outlook.” The decline in optimism is attributed to uncertainty surrounding the upcoming October Budget and broader global economic concerns. Input cost inflation has also surged to a 20-month high, prompting manufacturers to increase selling prices. This situation poses challenges for the Bank of England as they navigate interest rate policies amidst rising inflationary pressures.

Cyber incidents a major worry for UK CEOs

According to a recent report by FGS Global, British business leaders are increasingly concerned about the impact of cyber-attacks, with 85% of firms experiencing a crisis in the past year. The survey, which included over 500 senior leaders from companies like EY and JD Sports, revealed that 36% faced cyber incidents. Jenny Davey, a partner at FGS Global, said: “The consensus from our in-depth interviews is that crises are becoming more prevalent, but also more unpredictable.” Additionally, over half of the respondents expressed fear of ransomware attacks, yet only 36% felt “highly prepared” to handle such incidents.

Water bills set to soar 30% for small businesses

Small businesses in England and Wales are facing a near 30% increase in water bills by 2030, as water suppliers are accused of passing on the costs of “historic errors” made by industry leaders. Ofwat, the water industry regulator, anticipates average wholesale charges for non-household customers, including small firms and charities, to rise by approximately 27% over the next five years. Shaun Kent, Ofwat’s director for the business retail market, said the increase is part of a broader strategy to treble investment in water supply and environmental protection, amidst ongoing concerns over sewage discharges. Tina McKenzie, the policy chair at the FSB, said: “Historic errors in management, decision-making and performance targets by water companies are now being shunted on to small business and domestic household bills, at a time when the costs of doing business are already high.”

Government urged to combat fraud epidemic

The Social Market Foundation (SMF) has called for a united international effort to combat fraud, which has cost the UK economy approximately £16bn between 2021 and 2023. The report highlights that 21% of adults globally have fallen victim to fraud in the past three years, with £168bn lost to fraudsters worldwide. Richard Hyde, senior researcher at SMF, stated: “Any nation acting alone remains ill-equipped to deal with today’s fraudsters.” The report also emphasises the responsibility of banks and digital platforms in compensating victims, with 94% of respondents believing banks should bear this duty. The SMF advocates for new legal obligations for companies involved in the fraud chain to prioritise prevention and cover associated costs.

All tips must now be shared between workers by law

A new tipping law has coming into force, making it illegal for companies to withhold tips from employees. The regulation mandates that staff can access their employer’s tipping policy and a record of customer tips. It also aims to eliminate practices like deducting administrative fees. Kate Nicholls, chief executive of UKHospitality, welcomed the changes, saying: “These changes rightly ensure tips hard-earned through excellent service will end up entirely in their pockets.” The Government estimates that an additional £200m may be taken home by the three million staff benefiting from this law. Eilidh Wood, associate at UK law firm Burges Salmon, points out that the act also “widens the scope for potential claims for unlawful deduction of wages claims, as it incorporates tips in the definition of wages.”

Most UK businesses given council Covid grants would have survived anyway

A report from the Department for Business and Trade reveals that three-quarters of businesses that received COVID-19 support grants from local authorities would have survived without them. Some £23bn was spent on grants to 1.4m businesses, but news that only a quarter needed the funds adds to mounting concerns about waste during the pandemic.

Pension tax raid on the horizon

The Treasury is reportedly contemplating a £24bn pension tax raid as Chancellor Rachel Reeves seeks to address a £22bn budget deficit. The focus is on eliminating tax relief on pension contributions, particularly employers’ national insurance relief. Former pensions minister Steve Webb indicated that this change could generate up to £23.8bn annually, potentially filling the budget gap. However, concerns have arisen regarding the impact on retirement savings, with Nigel Peaple from The Pensions and Lifetime Savings Association warning that “the Government should think very carefully” about the implications. The proposed tax could also adversely affect small businesses and lead to increased inflation.

There are more billionaires than ever before

Forbes has published its annual list of the world’s billionaires, using stock prices and exchange rates from March 8, 2024 to tally their wealth. There are 141 more billionaires in the world than last year, and 2,781 in total. Their combined worth is $14.2trn, up by $2trn on 2023. Bernard Arnault, the head of French luxury fashion and cosmetics conglomerate LVMH, and his family are at number one on the Forbes list, with a net worth of $233bn. Elon Musk is No. 2 on the list, with a net worth of $195bn. At No. 3 is Amazon founder Jeff Bezos, who has a net worth of $195bn, followed by Facebook founder Mark Zuckerberg, who is worth $177bn, according to Forbes. The wealthiest woman on the list is Francoise Bettencourt Meyers, the granddaughter of the founder of L’Oreal, who is placed No. 15. She is worth $99.5bn.

Starmer to Brussels

The PM is looking to reset the post-Brexit relationship with Europe in his first meeting as PM with European Commission President Ursula von der Leyen.Britain and the EU are looking to hold their first bilateral summit next year, aimed at resetting the relationship.

Markets

Yesterday, the FTSE 100 closed up 0.48%  at 8276.65 and the Euro Stoxx 50 closed down 0.93% at 4854.15. Overnight in the US the S&P 500 fell 0.93% to 5708.75 and the NASDAQ dropped 1.53% to 17910.36.

This morning on currencies, the pound is currently worth $1.329 and €1.201. On Commodities, Oil (Brent)  is at $75.24 & Gold is at $2654. On the stock markets, the FTSE 100 is currently up 0.18% at 8291 and the Eurostoxx 50 is up 0.38% at 4973.

Oil is up on middle east worries and for the same reason US stocks dropped.

AIM market stumbles under tax raid fears

The London Stock Exchange’s junior AIM market has seen a significant decline in flotations, reaching its lowest level since the financial crisis. Only £88.6m was raised through IPOs in the year ending 30 September, a mere 1% of the £8.8bn raised during its peak in 2006/07, according to UHY Hacker Young. The number of companies on AIM has decreased by 7% from 753 at the end of 2023 to 704 in August 2024. Concerns are mounting over Chancellor Rachel Reeves potentially scrapping inheritance tax relief on AIM shares, which could lead to a 15% withdrawal of cash from the market and a 20-30% drop in stock values. Colin Wright, chair of UHY Hacker Young, stated: “Speculation about the future of tax relief on AIM shares is very unhelpful for the market.”

Political uncertainty weighs on dealmaking

Peel Hunt has reported a slowdown in market activity within the financial sector, attributing this to uncertainties surrounding the upcoming autumn Budget and the US election. The investment bank noted that while its revenue increased to £53.3m for the six months ending September 30, up from £42.7m the previous year, it expects full-year performance to align with market expectations. Despite these challenges, Peel Hunt anticipates a rise in UK firms seeking to float in the latter half of the year.

UK accused of ‘enabling corporate tax abuse’

The Tax Justice Network’s report reveals that the UK and its offshore tax havens account for one-third of global corporate tax abuse risks, leading to an estimated loss of $84bn (£63bn) annually. When including wealthy individuals, the total loss rises to $169bn (£127bn). The British Virgin Islands, Cayman Islands, and Bermuda are highlighted as key players in facilitating tax avoidance. Moran Harari, deputy director of policy at the Tax Justice Network, said: “Every second, we lose a nurse’s yearly salary to a tax haven.” The report criticises the UK Government for its lack of action against these jurisdictions and urges a shift in approach to combat corporate tax abuse effectively. A government spokesperson acknowledged the need to address tax avoidance and illicit finance in overseas territories.

Greggs

Yesterday Greggs reported a double-digit sales increase in the third quarter, although the pace of growth slowed from the pace set in the first half. The Newcastle, England-based bakery chain said total sales rose 11% for the 13 weeks to September 28, and 13% year-to-date. This compares to an increase of 14% reported in the 26 weeks to July 1. Company-managed shop like-for-like sales rose 5.0% for the quarter and 6.5% year-to-date, slowing from 7.4% at the half-year stage.

JD Sports

JD Sports Fashion warned that a stronger pound would impact its bottom line as it tweaked guidance for the full year. The group said foreign exchange rate headwinds made a £6 million dent in profits in the first half and are predicted to leave a £20 million mark in the second. This will be mostly counterbalanced by a £25 million contribution to earnings from Hibbett, the US chain it bought for $1 billion earlier this year.

James Halstead

James Halstead announced an annual profit climb as cost of sales fell more sharply than revenue. The Manchester-based commercial flooring manufacturer and distributor said pretax profit rose 7.9% to £56.2 million in the financial year ended June 30, from £52.1 million a year prior. Revenue, fell 9.4% to £274.9 million from £303.6 million.

Michel Barnier announces tax rises and spending cuts

France’s new prime minister, Michel Barnier, who was formerly the EU’s Brexit negotiator, has announced plans for tax hikes on the wealthy and large companies in an effort to tackle the country’s “colossal” debt pile. Barnier told the National Assembly on Tuesday: “If we do not act, our country will be on the edge of the precipice.” France’s deficit is expected to hit about 6% of GDP, far higher than the 5.1% goal and the 2023 level of 5.5%. Barnier set a goal for the deficit to reach 5% of GDP by end-2025.

Topps Tiles

Topps Tiles saw sales come down sharply this year, as persistently weak demand in the repair, maintenance and improvement (RMI) sector set the stage for “very challenging” trading conditions. The group’s annual sales (excluding the acquisition of tile supplier CTD in August) fell 5.7% to £248 million, though this was against a record-high 2023 comparative.

Inverness faces administration

Inverness Caledonian Thistle (ICT) is facing administration as the only viable option for survival after failing to secure crucial investment. The League One club is projected to lose £1.2m this season, with urgent cash required before year-end. Former chairman Alan Savage, now a consultant, has pumped in an additional £200,000 to keep the club afloat but leading football administrator Bryan Jackson from BDO, known for overseeing the liquidation of Rangers in 2012, has now been appointed to manage the situation.

Latest Insolvencies

Appointment of Liquidators – WILLIAM MASTERSON & SONS LIMITED
Appointment of Liquidators – FLEX NEURO LIMITED
Appointment of Liquidators – MI-PAC NEWCO LIMITED
Appointment of Liquidators – FINANCIAL AND TRADING SOLUTIONS LIMITED
Appointment of Liquidators – NIKUL PATEL LIMITED
Appointment of Liquidators – SPORTSCAPE GROUP LIMITED
Appointment of Liquidators – MI-PAC TRADING LIMITED
Appointment of Liquidators – B:NINE LTD
Appointment of Liquidators – FLANAGAN SHAW CONSULTING LIMITED
Appointment of Liquidators – I. HUTCHESON IT CONSULTANTS LIMITED
Appointment of Liquidators – TERRANOVA EXPLORATION LIMITED
Appointment of Liquidators – J.P. MORGAN TRUSTEE & ADMINISTRATION SERVICES LIMITED
Appointment of Liquidators – THE CLASSIC PUB COMPANY LIMITED
Appointment of Liquidators – CPR (CONSTRUCTION PLANS & REGULATIONS) LIMITED
Appointment of Liquidators – R WOOLLEY LIMITED
Appointment of Liquidators – FIRSTSERVE HOLDINGS LIMITED
Appointment of Liquidators – ZEBRA TRAINING SERVICES LIMITED
Appointment of Liquidators – BCINSIGHT LIMITED
Appointment of Liquidators – BOXDELUXE MEDIA LIMITED
Appointment of Liquidators – WELD SAFE PRODUCTS LIMITED
Appointment of Liquidators – STOSUN CAPITAL (INVESTMENTS) LLP
Appointment of Liquidators – EVA CULLEN CONSULTING LTD
Appointment of Administrator – CLIVEY BARN FARM LIMITED
Appointment of Liquidators – SAPPHIRE AVIATION FINANCE I (UK) LIMITED
Appointment of Liquidators – WEST WALES KIA LIMITED
Appointment of Liquidators – SHP BANCROFT LTD
Appointment of Liquidators – CLIFFORD PRINT FINISHING LIMITED
Appointment of Liquidators – YRL HOLDINGS LIMITED
Appointment of Liquidators – NORTH WEST FIRE PROTECTION LIMITED
Appointment of Liquidators – ZYGMUNT CURRY & SONS LIMITED
Appointment of Liquidators – WAMMEE LIMITED
Appointment of Liquidators – BROOKHOUSE RESOURCE ADVISORS LIMITED
Appointment of Liquidators – HILL HOUSE (LEXDEN) LIMITED
Petitions to wind up (Companies) – MCE COLCHESTER LIMITED
Appointment of Liquidators – UVA HOLDINGS LIMITED
Appointment of Liquidators – DRYBURGH PARTNERS LTD
Appointment of Liquidators – JPMAM RE PROPERTY GP LIMITED
Appointment of Liquidators – CENTINEL LTD
Appointment of Liquidators – ARENA WEALTH LIMITED
Winding up Order (Companies) – G S DOYLE LIMITED
Appointment of Liquidators – JOHN ROBERTSON LTD.
Appointment of Liquidators – DUNROMAN LIMITED
Petitions to wind up (Companies) – BREWKITCHEN LIMITED
Appointment of Administrator – BELA STRUCTURES LIMITED
Petitions to wind up (Companies) – ASTUTE CAPITAL LIMITED
Appointment of Liquidators – SPECTRE INDUSTRIAL HOLDINGS LIMITED
Appointment of Liquidators – MR POPOLINOS LIMITED
Appointment of Liquidators – ADC PRODUCTS (UK) LIMITED
Appointment of Liquidators – CAPSTAN MANAGEMENT ASSISTANCE LIMITED
Petitions to wind up (Companies) – CHEEM LIMITED
Petitions to wind up (Companies) – HEMMINGWAY SHWARTZ LTD
Petitions to wind up (Companies) – SPRAYDOWN LIMITED
Appointment of Liquidators – LINCOLN ENT CONSULTANTS LIMITED
Petitions to wind up (Companies) – CONSTRUCTION SERVICES SCOTLAND LTD.
Appointment of Liquidators – STONECUTTER GROUP FINANCING LIMITED
Petitions to wind up (Companies) – PEGASUS ELECTRICAL MARINE LTD
Appointment of Liquidators – BIRCHWOOD FARMS LIMITED
Appointment of Liquidators – CRESSWEST LTD
Appointment of Liquidators – LEONARDBEAVAN LIMITED
Appointment of Liquidators – SAVAGE WRIGHT LTD
Appointment of Liquidators – MB NEW BARNET LIMITED
Petitions to wind up (Companies) – DIAMOND WINDOW CLEANING LIMITED
Petitions to wind up (Companies) – BRANCCO LTD
Appointment of Liquidators – JOHN LOWE LIMITED
Petitions to wind up (Companies) – FIRTH HOTELS LTD
Petitions to wind up (Companies) – BOROUGH MURRAY LIMITED
Appointment of Administrator – BROMHAM BIOGAS LTD
Appointment of Liquidators – RIVERSIDE WORKS INDUSTRIAL SERVICES LIMITED
Appointment of Liquidators – STEVEN COYLES FINANCIAL SOLUTIONS LIMITED
Appointment of Liquidators – LHV CONSULTING LIMITED
Appointment of Liquidators – PAYNE’S BUILDERS LIMITED
Appointment of Liquidators – PREMIER DE-ICERS LIMITED
Appointment of Liquidators – COTSWOLD CONSULTING SOLUTIONS LIMITED
Petitions to wind up (Companies) – BUIE BRAW LIMITED
Appointment of Liquidators – MOBILITY NATIONWIDE LIMITED
Appointment of Liquidators – SRR VKS PROPERTIES LTD
Appointment of Liquidators – L B M CONTAINER CONTROL LIMITED
Appointment of Liquidators – MAB SERVICES (YORKSHIRE) LIMITED
Appointment of Liquidators – INFRACAPITAL GREEN UK LIMITED
Appointment of Liquidators – BST TRANSPORT & WAREHOUSING LIMITED
Appointment of Liquidators – TRANSPORT PLANNING LIMITED
Petitions to wind up (Companies) – SHORE-SHACK LTD
Appointment of Liquidators – FROGMORE HOMES LTD

 

Why you should become a member of CPA!

The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have supported our members through all sorts of difficult trading environments.  With high interest rates and a struggling economy and elevated insolvencies, our services can help your business navigate these difficult waters.

Unlike other credit management and debt collection companies, we offer a range of services to our members that are all included as part of a fixed annual subscription, tailored to your needs.

Under your annual subscription you will have access to our main services:

  1. Our Creditcare credit reports provide credit ratings and limits along with a host of detailed information on your potential customers to enable you to trade with confidence and set appropriate credit policies for new customers.
  2. Our monitoring service will alert you to any significant changes in the status of those customers.
  3. Our Overdue account recovery service can be used to chase up payment on any invoices to those customers that have not been paid on time. Unlike other debt collection companies, this service directs your customer to pay direct to you and allows you to maintain your goodwill with them, rather than inserting ourselves into your relationship with you customer and insisting they pay CPA instead. Our Overdue account recovery service resolves over 80% of accounts referred to us.

All of the above services and other complimentary services such address verification, are included in your subscription!

And for the small minority of debts not resolved through our Overdue account recovery service, you can refer the debt to our collections department to escalate the late payment collections process.

CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers and be warned of any potential risks. CPA has been improving business cash flow for over 100 years, by tackling late payers and campaigning against the late payment culture in the UK.

Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the value of their debts maybe!

Rather than to borrowing more money to improve your cashflow, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cashflow, then talk to CPA about how we can help you reduce those late payments.

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.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections

 

Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!

If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA’s collection department for purchase on recourse?

CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.

Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.

Just call  020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.

 

Get compensated for previous late payments

Have you been paid late by business customers in the last six years?

Maybe you no longer work with them. Under legislation, you are entitled to  compensation you for those late payments you have suffered.

You put up with the PAIN – now claim the GAIN!

Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!

CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients

Check our compensation calculator to see how much your business could be owed!

Discover NOW the potential value of late payment compensation hidden in your sales ledger!

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.