Business news 19 July 2023
James Salmon, Operations Director.
Insolvencies up 27% year-on-year. PM criticised over lack of SMEs on business council. Profit warnings climb in Q2. And more business news that we thought would interest our members.
Insolvencies up 27% year-on-year
Figures from the Insolvency Service show that there were 2,163 insolvencies in June and while this was down on the 2,552 recorded in May, it is 27% higher year-on-year.
Creditor’s voluntary liquidations accounted for most of June’s insolvencies, with a 21% year-on-year increase meaning there were 1,759 recorded. There was also a 77% year-on-year spike in compulsory liquidations, taking June’s total to 260. Considering the data, PwC noted that smaller businesses with turnover of less than £1m accounted for 97% of the insolvencies. David Kelly, head of insolvency at PwC, said: “The relationship between interest rates and insolvencies tends to have a lag effect but we’re now starting to see a large number of companies having to restructure their debt, which is leading to increased liquidity pressure and, consequently, more voluntary liquidations.”
With insolvencies have risen by 27% YoY, and late payments becoming more frequent, small businesses are under immense pressure. The lack of cash flow has made it difficult for small business owners to grow, and the threat of rising costs and interest rates is becoming increasingly real. It’s crucial to support small businesses during these challenging times. #SmallBusiness #CashFlow #SupportSmallBusinesses.
If you are facing cashflow difficulties, talk to CPA about how we can unlock capital for you. We can speed up late payments, and our unique Late payment compensation service, can unlock compensation you are due on the late payments from your business customers over the last 6 years.
just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
PM criticised over lack of SMEs on business council
The Federation of Small Businesses (FSB) has criticised Rishi Sunak after smaller firms were excluded from the Prime Minister’s new council of private sector advisers. The PM’s new Business Council comprises 14 chairs and CEOs and all but one are from FTSE 100 firms.
Craig Beaumont, the FSB’s external affairs chief, said the council fails to reflect the “diversity among the UK’s brilliant 5.5m-strong business community,” arguing that this is “not reflected in 14 corporate bigwigs getting around a table twice a year.”
He went on to ask: “What do these suits know about the issues facing small businesses in our local communities and on our high streets?” Mr Beaumont added: “Downing Street is the cockpit of the nation and should be listening to ideas and talent from right across the business community,” going on to suggest that with the UK home to “some of the most dynamic, small firms that are changing the world,” these businesses “would bring disruptive new ideas from the economy in to public policy thinking.”
Profit warnings climb in Q2
The number of profit warnings from public companies has risen for the seventh consecutive quarter, according to EY, which found that UK-listed companies issued 66 profit warnings between April and June. It was also shown that 17.9% of all UK-listed firms have lowered their profit expectations in the past year. The research also reveals an increase in the number of companies warning on their financial performance multiple times. The number of companies issuing their third profit warning rose from 31 to 36 in Q2. Jo Robinson, restructuring partner at EY, said: “The sustained rise in profit warnings over the past two years reflects the extraordinary mix of challenges faced by UK businesses over that timeframe.” She added: “The number of businesses that had previously locked in low interest rates has postponed some of the challenges, but not indefinitely.”
Graduate salaries ‘far from dazzling’
With research from the Institute of Student Employers indicating that the average graduate salary in Britain sits at £33,229 a year.
Income inequality narrows
The richest households in Britain earn nearly four times as much as the poorest, according to data from the Office for National Statistics (ONS). While the highest earners made an average of £83,700 last year, the least well off typically had an income of £22,300, with this 3.8 times less. This marks a narrowing of the gap between the highest and lowest earners, with top earners pocketing four times that of those with the lowest income in 2021. Income inequality has narrowed due to the tax and benefits systems, the report reveals. Before taxes and benefits, top earners made £117,500 on average, 14 times higher than the £8,200 average among the poorest fifth. Direct taxes – mainly income tax and National Insurance – paid by the average top earner in the UK amounted to £36,360 compared to £2,193 for the poorest. The report suggests that indirect taxes are a driver of income inequality, with VAT tending to account for a bigger share of less well-off households’ finances.
State pension could hit £14k by 2030
Analysis by finance firm AJ Bell suggests that the state pension could hit £13,230 a year by 2030 if inflation stays higher than official forecasts and ministers remain committed to the triple lock. The pledge, which sees the state pension increase by the highest of inflation, average earnings growth or 2.5%, saw pensions climb 10.1% to £10,600 this year.
Tata to build battery factory in Somerset
Jaguar Land Rover-owner Tata plans to build its flagship electric car battery factory in the UK, sources have revealed. The Government is reportedly providing subsidies worth hundreds of millions of pounds for the plant in Somerset, with BBC News saying these are likely to be in the form of cash grants, discounts on the cost of energy, and training and research funding. The new factory, which could lead to the creation of up to 9,000 jobs around Bridgwater, will initially supply batteries for a new range of electric Jaguar and Land Rover models.
Grocery price inflation falls for fourth consecutive month
Annual grocery price inflation fell 1.6 percentage points to 14.9% in the four weeks to July 9. This was down from 16.5% in the previous month and marks the fourth consecutive decline. Analysis shows that at the current level of inflation, households would have spent £683 more on their annual grocery bill if they had bought the same products they did last year. However, by seeking out cheaper deals and retailers, customers have reduced the increase to just £330. Data shows that spending on promotions now accounts for just over a quarter of all UK grocery spending. Meanwhile, Ocado chief executive Tim Steiner believes that the UK is “definitely over the worst” of food price inflation.
Latest Insolvencies
Appointment of Liquidators – F.H. CUMMINGS (1982) LIMITED
Appointment of Administrator – A & A TRAINING LTD
Appointment of Liquidators – GO GRAFTON FINANCE LTD
Appointment of Administrator – J A FOX LTD
Appointment of Liquidators – TEACHER PUBLISHING COMPANY LIMITED(THE)
Appointment of Liquidators – F.H. CUMMINGS
Appointment of Administrator – MARKLINE CONSTRUCTION LIMITED
Appointment of Liquidators – MANSFIELD ENGINE CENTRE LIMITED
Appointment of Liquidators – PCS CONSULTANCY LTD
Appointment of Administrator – WINEBUYERS GROUP LTD
Appointment of Liquidators – AICM PROPERTY SERVICES LTD
Appointment of Liquidators – SYSSOFT UK LIMITED
Appointment of Liquidators – FIRECO PARTNERS LIMITED
Appointment of Liquidators – LMA CONSULTANTS LIMITED
Appointment of Liquidators – LUDO PROPERTY VENTURES LIMITED
Appointment of Liquidators – OPRUS LIMITED
Appointment of Liquidators – INVECTIO LTD
Appointment of Administrator – RED KEY CONCEPTS DESIGN & BUILD LIMITED
Appointment of Liquidators – WILLIAM WOOD’S EXORS,LIMITED
Appointment of Liquidators – R. C. CARS LTD.
Appointment of Administrator – UK ADDICTION TREATMENT GROUP LIMITED
Appointment of Liquidators – FHC 1 LTD
Appointment of Administrator – THE HAND MADE MATTRESS COMPANY LIMITED
Appointment of Liquidators – BASEL INVESTMENTS LIMITED
Appointment of Liquidators – PROJECT ADVISORY UK LTD
Appointment of Liquidators – LAMPORT & HOLT LINE LIMITED
Petitions to wind up (Companies) – SCARIODINTTS LTD
Appointment of Liquidators – APPWAY UK LIMITED
Appointment of Liquidators – ELITE DISPLAYS LIMITED
Appointment of Liquidators – BASS JARRINGTON LIMITED
Petitions to wind up (Companies) – MIDNIGHT SUN FESTIVALS LIMITED
Appointment of Liquidators – BE REMARKABLE EVENTS LIMITED
Appointment of Liquidators – LIBERTY PROPERTIES (HOMES) LIMITED
Appointment of Liquidators – JARRINGTON PROPERTIES LIMITED
Appointment of Liquidators – ARC DEVELOPMENTS (CORNWALL) LIMITED
Appointment of Liquidators – LEEDS CITY VILLAGE LIMITED
Appointment of Liquidators – GUTHRIE SCOTTISH NOMINEES (NO.1) LIMITED
Appointment of Liquidators – AOZORA GMAC INVESTMENT LIMITED
Appointment of Liquidators – MIDLAND BRICK SPECIALS LIMITED
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 one will be particularly deadly for suppliers for some time to come.
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!
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.
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.