Business news 17 July 2024
33% of SMEs will need new finance within 12 months if they are to survive. Inflation, interest rates, recruitment, growth, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
33% of SMEs will need new finance within 12 months if they are to survive
Novuna Business Cash Flow’s recent survey of 500 SMEs showed that 33% of small and medium-sized enterprises (SMEs) in the UK will urgently require financial support in the next 12 months to survive.
A major challenge according to the survey is the dramatic impact of late payments on business cash flow, with 45% of SMEs hit by late payments, damaging their cash flow and severely disrupting their business activities.
With 37% of SMEs saying that the worsening economic conditions are making external funding more crucial than ever, and a stark 34% admitting they will have to close without new finance, a support for business cash flow is essential.
Rather than to turning to more debt, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cash flow, then talk to CPA about how we can help you reduce those late payments.
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. CPA’s overdue account recovery service is a polite, efficient service designed to encourage prompter payments while maintaining goodwill. We direct your customers to pay directly to you, not to us and want to support and reinstate your direct relationship with your customer, not take it over, destroying goodwill.
Unlike other credit management companies, our overdue account recovery service is available to our members on a fixed annual subscription so you can pass any overdue accounts to this service and it is included in your subscription!
Our Overdue account recovery service resolves over 80% of accounts referred to us although our collections department is there to escalate the collections process on the remaining few if you require it.
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.
Inflation
UK inflation remained at 2% for June above forecasts that it would drop to 1.9%. The core inflation rate which strips out energy, food, alcohol and tobacco was also unchanged at 3.5%. Services inflation continues to be stubbornly high at 5.7%.
Interest rate expectations
Gilt prices were up with investors now pricing in a half point cut in Bank rate by the end of 2024 to 4.75%. The yield on 2 year gilts declined 6 basis points to 3.96%, whilst the 30 year yield lost 3 basis points at 4.08%.
However the IMF said UK interest rates will need to be kept higher for longer unless there is more progress reducing UK service sector inflation which has only fallen to 5.7% from 6.5%.
IMF: Economy will grow 0.7% this year
The International Monetary Fund (IMF) predicts that the UK economy will grow by 0.7% in 2024, with this unchanged from a forecast it issued in May. Looking ahead, the global fiscal watchdog expects the UK economy to grow 1.5% in 2025. While the IMF’s forecasts are unchanged, a number of analysts have upgraded their predictions for UK GDP, with Barclays and Goldman Sachs both suggesting the economy could grow by 1.1% in 2024. Alongside its forecasts, the IMF warned that the UK is among countries that are “seeing some persistence” in inflation. Chief economist Pierre Olivier Gourinchas said this means interest rates have to stay “higher for even longer.” The IMF predicts that the global economy will grow by 3.2% in 2024 before expanding by 3.3% in 2025.
PwC upgrades growth forecast
PwC has upgraded its forecasts for Britain’s economy, saying it now expects GDP to expand by 1% this year – double its previous prediction of 0.5%. The Big Four firm predicts the UK economy will grow by 1.7 in 2025 and 1.8% in 2026.
Firms struggle to hire staff, survey shows
UK businesses are experiencing increasing difficulties in hiring staff, according to a survey conducted by the British Chambers of Commerce (BCC). The survey, which quizzed over 4,700 companies, found that three out of five businesses had attempted to recruit in the past three months. Of those who had attempted to secure new staff, three-quarters reported recruitment difficulties. The construction and engineering sectors were the most affected, followed by the transport and logistics industry. Jane Gratton of the BCC said: “It’s alarming that recruitment difficulties have increased in recent months across all sectors,” warning: “People shortages and labour costs are ramping up pressure on firms and holding back growth.” She added: “We need to prioritise help for people to get back into the labour market and remove the barriers to business investment in training. Better planning for skills is crucial.”
Saver choice at 12-year high
Analysis by Moneyfacts shows that savers have the biggest choice of deals since May 2012, with 2,014 currently available. Of these, 571 are cash ISAs. The analysis shows that while the average easy-access savings account pays interest of 3.11%, the typical rate across notice accounts is 4.29%.
Markets
Yesterday, the FTSE 100 closed down 0.22% yesterday at 8164.90 and the Euro Stoxx 50 closed down 0.71% at 4947.83. Overnight in the US the S&P 500 rose 0.64% to 5667.20 and the NASDAQ rose 0.20% to 18509.34.
This morning on currencies, the pound broke the $1.30 barrier for the first time in a year, & is currently worth $1.303 and €1.191. On Commodities, Oil (Brent) is at $83.7 & Gold is at an all time high at $2472. With stock markets, the FTSE 100 is down a further 0.2% at 8148 and the Eurostoxx 50 is down 0.75% at 4910 with ASML dragging the market down.
Smoking
UK government is reportedly considering a smoking ban, similar to the one proposed by the last government that would ban the sale of tobacco products to anyone born after 2009. An announcement is expected in the King’s Speech. The UK government received £8.8bn from the sale of tobacco in 2023.
HSBC
HSBC Holdings has appointed HSBC insider Georges Elhedery as its next chief executive officer. Elhedery will take over as CEO from 2nd September.
Babcock
Babcock reported unchanged revenues of £4.4bn with underlying EPS rising to 30.8p. The results included a £90m adjustment in respect of a £90m loss on the Type 31 contract. Babcock reduced net debt by £129m to £435m.
ASML
ASML reported Q2 net income of €1.58bn up from €1.22bn in Q1 on net sales of €6.24bn. ASML has announced it will pay a €1.52 per share dividend. ASML shares fell €58 per share (5%) due to worries about further US export restrictions, one of the biggest decliners on the continent this morning.
Ministers urged to act over 60% tax trap
More than half a million people are paying up to 60% tax on some of their pay due to a quirk in the system. Those earning a salary from £100,000 to £125,140 pay more tax on the next pound they earn than people on higher salaries. This occurs when the 40% higher income tax rate combines with the tapered loss of the £12,570 personal allowance – the amount you can earn tax-free. For every £2 earned above £100,000, a worker loses £1 of their personal allowance. By the time they earn £125,140, this has fallen to zero. The number of taxpayers in this income range rose by 23% from 436,000 to 537,000 between 2021/22 and 2022/23. Mark Incledon, chief executive at Bowmore Financial Planning, has urged the Government to act, saying higher earners have been left at a “big disadvantage.” He said: “Reaching a six-figure salary has long been a major goal for a lot of people … Unfortunately, if HMRC takes 60p in every pound you earn above £100,000, the lure of getting there is a lot more limited.”
Body Shop
Body Shop is close to agreeing a rescue deal with Mike Jatania in ‘the coming weeks’ according to FRP Advisory the administrators.
Latest Insolvencies
Petitions to wind up (Companies) – FAIRY CLEANINGS LIMITED
Petitions to wind up (Companies) – YOUNGS SCHNAUZERS LIMITED
Petitions to wind up (Companies) – S.A.H. PROPERTY DEVELOPMENTS LTD
Petitions to wind up (Companies) – PORTOFINE MANAGEMENT LTD
Petitions to wind up (Companies) – OSOM ACCOUNTING SERVICES LTD
Petitions to wind up (Companies) – IVJ DRIVER LTD
Petitions to wind up (Companies) – ROXBY GARAGE LIMITED
Petitions to wind up (Companies) – MR BAGZ LIMITED
Petitions to wind up (Companies) – PR PLUS LIMITED
Petitions to wind up (Companies) – HALEBRAY LIMITED
Petitions to wind up (Companies) – JUST A BARGAIN (LIVERPOOL) LTD
Appointment of Liquidators – NEVER NEVER PICTURES LIMITED
Appointment of Liquidators – FAIRBURN-HART & HARDINGHAM LLP
Appointment of Liquidators – D.J.R.QUILTERS LIMITED
Appointment of Liquidators – CROWNMEAD PROPERTIES LTD
Appointment of Liquidators – JCL ICONSULTING LTD
Appointment of Liquidators – ENTERPRISE SYSTEMS SOLUTIONS LIMITED
Appointment of Liquidators – TON ASSOCIATES LIMITED
Appointment of Liquidators – DR PN COOPER LIMITED
Appointment of Liquidators – SMJ COMMUNICATIONS LIMITED
Petitions to wind up (Companies) – TOPHAT COMMUNITIES LIMITED
Petitions to wind up (Companies) – MADDOX RETAIL LTD
Petitions to wind up (Companies) – MEDIA BUSINESS SOLUTIONS (UK) LTD.
Petitions to wind up (Companies) – AP HEATING SOLUTIONS LTD
Petitions to wind up (Companies) – MANNING PLUMBING AND HEATING LIMITED
Petitions to wind up (Companies) – HOMEWOOD’S ELECTRICAL & MECHANICAL LTD
Petitions to wind up (Companies) – BRISTOL PLUMBING AND BATHROOMS LTD
Appointment of Administrator – COLLECTIF.CO.UK.LIMITED
Appointment of Liquidators – NEW WAVERLEY 20 LIMITED
Appointment of Liquidators – JACOBUS CONSULTING LTD
Appointment of Liquidators – VERDESIAN LIFE SCIENCES EUROPE LIMITED
Appointment of Liquidators – IT BRIDGEBUILDERS LIMITED
Appointment of Liquidators – PREMAL WELL ENGINEERING LIMITED
Petitions to wind up (Companies) – H & D LTD
Appointment of Liquidators – CHARLIE REAL ESTATE LIMITED
Appointment of Liquidators – RLC HOLDINGS LTD
Appointment of Administrator – ARROL ARCHITECTS LIMITED
Appointment of Administrator – HOME DELIVERY SOLUTIONS LIMITED
Appointment of Administrator – MAJOR HOSPITALITY SOLUTIONS LIMITED
Appointment of Liquidators – DFW PHARMA CONSULTING LIMITED
Appointment of Liquidators – STEMACO (RAW MATERIALS) LIMITED
Appointment of Liquidators – FOUNDATION HEALTHCARE (FUND I) LIMITED
Appointment of Liquidators – FIELD HOUSE BARN LIMITED
Appointment of Liquidators – BEACON FINANCIAL HOLDINGS LIMITED
Appointment of Liquidators – M D LLOYD LIMITED
Appointment of Liquidators – THE EGERTON (PROPERTY) PARTNERSHIP LIMITED
Appointment of Liquidators – F E D DEVELOPMENT LIMITED
Appointment of Liquidators – VENDHAL SERVICES LIMITED
Appointment of Liquidators – GREENWICH PARKSIDE ENTERTAINMENT LTD
Appointment of Liquidators – GUARINO CONSTRUCTIONS LIMITED
Appointment of Liquidators – L F COHEN LTD
Appointment of Liquidators – OPTIMORPH DEVELOPMENT LTD
Appointment of Liquidators – RICHARD KLEINWORT CONSULTANCY LIMITED
Appointment of Liquidators – VIRIDIAN LAW LTD.
Appointment of Liquidators – ODEDRA CONSULTANCIES LIMITED
Appointment of Liquidators – HOME DIMENSIONS LTD
Appointment of Liquidators – ASTUR DESIGN LIMITED
Appointment of Liquidators – S.M. TIDY (INDUSTRIES) LIMITED
Appointment of Liquidators – ANDREW HOLDERNESS CONSULTANCY LIMITED
Appointment of Liquidators – GOR BUSINESS SERVICES LTD
Appointment of Liquidators – MCDI HOMES LIMITED
Appointment of Liquidators – EBM ASSET MANAGEMENT LIMITED
Appointment of Liquidators – LEIGHTON AVIATION LIMITED
Appointment of Liquidators – TELE-CONTROL LIMITED
Petitions to wind up (Companies) – PARTS PALACE LTD
Petitions to wind up (Companies) – CEE ME LTD
Petitions to wind up (Companies) – PETERBOROUGH GRASS MACHINERY LTD.
Petitions to wind up (Companies) – K4CARS LIMITED
Appointment of Liquidators – CYBERICOM LIMITED
Appointment of Liquidators – J.L.O LTD
Appointment of Administrator – HUB BOX LIMITED
Appointment of Liquidators – CARBON-12 CROYDON LIMITED
Appointment of Liquidators – JSL (WOLVERHAMPTON) LIMITED
Appointment of Liquidators – IPSX UK LIMITED
Appointment of Liquidators – CUNNING SOLUTIONS LIMITED
Appointment of Liquidators – CITY DEVELOPMENTS GROUP LIMITED
Appointment of Liquidators – ABBY CLOUD SOLUTIONS LIMITED
Appointment of Administrator – GREMIO DE LONDON LIMITED
Appointment of Administrator – BABEL SILK LIMITED
Appointment of Liquidators – PENTIRE CAPITAL LTD
Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have seen many financial crises, this last one was particularly deadly for suppliers fand we are still seeing elevated insolvencies as businesses struggle.
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.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the debt value maybe!
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 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.