Business news 21 August 2024
UK company insolvencies up. Small businesses need to up their game on cyber security. Tourist tax costing Britain. UK economy growing twice as fast as EU. The right to disconnect, minimum wage, working on holiday, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
UK company insolvencies up 16% on July last year
More concerning numbers for those that sell B2B on credit.
Insolvency levels in England and Wales remain significantly elevated, with a 16% year-on-year increase in July, totalling 2,191 company insolvencies.
Rebecca Dacre, a partner at Forvis Mazars, remarked that this data serves as “a strong reminder that many businesses are still a long way off from recovery.” Despite some signs of economic improvement, high interest rates and falling consumer spending during the cost of living crisis continue to challenge sectors like retail and hospitality.
Sarah Rayment, head of global restructuring at Kroll, noted that while there are reasons for optimism, many companies face high borrowing costs and may need to restructure. The figures also revealed a rise in individual insolvencies, up 24% year-on-year, with 10,524 cases reported in July.
Are you using CPA’s CreditSure Reports to credit check your business customers before you trade with them?
Small businesses need to up their game on cyber security
Recent research by Probrand indicates that 69% of UK small businesses are using weak passwords, exposing them to significant cyber security risks. The study, which assessed numerous SMEs, found that 47% lacked up-to-date anti-virus software, while 15% had no firewall protection. Matt Royle, Marketing Director at Probrand, stated: “In today’s society, it’s never been more important for businesses to really understand the financial risks presented by cyber-attacks.” The report also highlighted that 29% of businesses had no patch management in place, which is essential for maintaining security.
Tourist tax costing Britain £3.9bn a year
Britain’s economy is grappling with a £2.8bn deficit in tourist spending, prompting calls for the reinstatement of tax-free shopping for international visitors. According to VisitBritain, spending is projected to be 8% lower than in 2019 due to inflation. The Centre for Economics and Business Research’s report suggests that eliminating the “tourist tax” could potentially increase tourist expenditure by £3.9bn annually, as it would attract more visitors who also contribute to local businesses. Rachel Reeves aims to be the most “pro-growth Chancellor” in British history, yet the Government has resisted calls to abolish the tax, prompting the hotelier Sir Rocco Forte to state that maintaining the tax would undermine Labour’s growth commitments.
UK economy growing twice as fast as EU
The UK economy has shown resilience, growing by 0.6% between April and June, marking its second consecutive quarter of growth. This performance outstrips the EU, which only managed a 0.3% increase during the same period. Jeremy Hunt, former Chancellor, stated: “Today’s figures are yet further proof that Labour have inherited a growing and resilient economy.”
However, Simon Pittaway from the Resolution Foundation cautioned that GDP per capita remains stagnant compared to pre-pandemic levels, indicating that households are still £580 worse off annually. The Treasury also highlighted the ongoing financial challenges with a source saying: “We don’t accept the positive economic inheritance line, given the decade that went before – but regardless, nothing in the recent data can offset the scale of the black hole in the public finances we’re looking at.”
Firms must have flexibility with right to disconnect
The Government’s proposal to grant workers the “right to disconnect” has raised concerns about the need for flexibility in its implementation. Experts, including Ben Willmott from the Chartered Institute of Personnel and Development, said it is important that any new right to switch off is introduced with “sufficient flexibility” with sector-specific demands taken into account. The initiative aims to prevent the blurring of work and home life, as stated by the Prime Minister’s spokesperson.
However, Joanne Leach from Lawrence Stephens warned that the right to disconnect could conflict with right to work flexibly of other employees. She suggested practical measures, such as delaying email communications outside office hours, to manage these competing interests. The policy may also lead to increased scrutiny during recruitment, says James Lavan, executive director at legal recruitment firm Buchanan Law, as firms try to ensure they are hiring people who will be willing to go above and beyond.
Minimum wage violations exposed online
Research by the TUC has revealed that companies are advertising jobs that pay below the national living wage on popular job boards. In a single day in July, 46 full-time positions were identified on Reed, Indeed, and CV-Library that offered salaries beneath the legal minimum of £11.44 per hour, which was raised by 9.8% in April. One example highlighted was a graduate copywriter role in Hampshire, offering between £15,000 and £20,000 annually, while an assistant accountant position required a minimum of two years’ experience and offered £16,770 to £22,308. The TUC says their findings raise serious concerns about compliance with wage regulations.
Over two-fifths work on holiday
According to a survey by NatWest Premier, the trend of “working from holiday” is increasing, especially among high earners. The study revealed that 42% of Britons work while on holiday, with this figure rising to 66% for those earning over £100,000 annually. Despite the rise in remote work, many still do not utilise their full holiday allowance, with 45% taking all their annual leave.
Markets
Yesterday, markets went red as global equities gave back some recent gains with caution prevailing ahead of this weekend’s Jackson Hole symposium. The FTSE 100 closed down 1% at 8273.32 and the Euro Stoxx 50 closed down 0.28% at 4857.58. Overnight in the US the S&P 500 fell 0.2% to 5597.12 and the NASDAQ fell 0.33% to 17816.94.
This morning on currencies, the pound is currently worth $1.301 and €1.171. On Commodities, Oil (Brent) is at $77.3 & Gold is at $2507. On the stock markets, the FTSE 100 is currently up 0.14% at 8284 and the Eurostoxx 50 is up 0.25% at 4870.
A trio of high street lenders, HSBC, TSB and Barclays have trimmed their mortgage rates – TSB by 0.25% and Barclays by 0.15% to 5.07% in response to lower money market interest rates. However investors took the view that competitive pressures were building and marked down shares in both HSBC and Barclays.
Pound edges above $1.30 amid expectations of Fed cuts
The pound has risen above $1.30 for the first time in over a year, driven by market expectations of a potential interest rate cut by the US Federal Reserve in September. As of Tuesday afternoon, sterling was trading at approximately $1.302, with traders optimistic about its continued momentum. The likelihood of a rate cut has increased due to signs of a slowing US economy, including a rise in unemployment to its highest level in three years. Goldman Sachs economists expect jobs growth for the year will be at least 600,000 weaker than current estimates – and the decline could be as much as a million, but JPMorgan Chase forecasters predict a smaller decline of 360,000 jobs.
Government borrowing
UK Government Borrowing in the first four months of the financial year stands at £51.4 billion, the ONS said, which is down £0.5 billion than a year ago but still in the top four highest levels since the 1990s. At £2,745.9 billion, total debt was 91.9% of GDP, which was 4.9 percentage points more than a year earlier.
Former BHS directors ordered to pay £110m
Dominic Chappell and Lennart Henningson, former directors of the collapsed department store BHS, have been ordered to pay £110m to creditors for breaching their corporate duties. The ruling follows BHS’s administration in 2016, which left creditors, including its pension fund, with debts exceeding £1bn. The court found that the directors failed to act in the company’s best interests by continuing to trade instead of initiating insolvency proceedings. Tony Wright, a joint liquidator, expressed satisfaction with the ruling, stating: “We are pleased that the court has found these directors accountable for almost all of the deficit suffered by creditors.” The total liability could rise to £150m due to interest and penalties.
Entrepreneurs pawn valuables for loans
Entrepreneurs in the UK are increasingly turning to pawnbrokers like H&T for loans, as traditional banks tighten lending criteria. Chris Gillespie, H&T’s chief executive, noted: “The majority of these loans have been used by small business owners or self-employed people.” With a significant portion of H&T’s clientele coming from ethnic minorities, particularly the Asian community, the company reported a rise in high-value pledges, including Rolex watches. H&T’s pledge book grew to £105m, with income increasing by 11% to £55.8m.
Latest Insolvencies
Appointment of Administrator – SL100 LIMITED
Appointment of Administrator – THE BARK BOOK LTD
Appointment of Administrator – TALENT INTUITION LIMITED
Appointment of Liquidators – DEANSGATE 123 LLP
Appointment of Liquidators – DHQ CONSULTING LTD
Appointment of Liquidators – DIGITALOOP LTD
Appointment of Liquidators – NAVIGATOR SECURITIES TWO LIMITED
Appointment of Liquidators – AGILA CONSULTING LIMITED
Appointment of Liquidators – ALBERT LOOMS (HOLDINGS) LIMITED
Appointment of Liquidators – BP INV4 HOLDCO LTD
Appointment of Liquidators – ALBERT LOOMS LIMITED
Appointment of Liquidators – FABULOUS HAIR BRANDS LIMITED
Appointment of Liquidators – HAWTHORN PRODUCE HANDLING & PACKING LIMITED
Appointment of Liquidators – BRUNNHILDE LTD
Appointment of Liquidators – KENEXA ESTATES (THORNTON HEATH) LIMITED
Appointment of Liquidators – JRXFERNANDES LTD
Appointment of Liquidators – ADVENTURE BALLOONS LIMITED
Appointment of Liquidators – FIREBIRD METALS LIMITED
Appointment of Liquidators – CYARX TECHNOLOGIES UK LIMITED
Appointment of Liquidators – DOLLAR HOTSPOT REMOTE LTD
Appointment of Liquidators – IPSWICH PLASTICS LIMITED
Appointment of Liquidators – KEENAN PROCESSING LIMITED
Appointment of Liquidators – KENEXA ESTATES HOLDINGS LIMITED
Winding up Order (Companies) – KIYATA LIMITED
Petitions to wind up (Companies) – RME BUILDING SERVICES LTD
Appointment of Liquidators – COMPETITION CARBON LIMITED
Appointment of Administrator – H. CHARLESWORTH & CO LIMITED
Appointment of Liquidators – DOUBLE R INVESTMENTS LIMITED
Appointment of Liquidators – BIANT MEDICAL LIMITED
Appointment of Liquidators – CEVA LOGISTICS CFS (UK) LIMITED
Petitions to wind up (Companies) – DIGITAL MEDIA DIRECT LIMITED
Appointment of Liquidators – SBAY-C SA (1) LIMITED
Appointment of Liquidators – BROOK DENE HOMES LIMITED
Petitions to wind up (Companies) – MEDICINE COLLECTION LIMITED
Appointment of Liquidators – SUBCO (GLASGOW) LIMITED
Petitions to wind up (Companies) – KASKON LTD
Petitions to wind up (Companies) – AMOLIN SOLUTION LIMITED
Petitions to wind up (Companies) – FLAMESAFE PLUMBING AND HEATING LTD
Petitions to wind up (Companies) – ST THOMAS STREET (BRISTOL) LLP
Petitions to wind up (Companies) – JPEN JOHN PATRICK ENGINEERING LIMITED
Petitions to wind up (Companies) – ALL YOU CAN GROUP LIMITED
Petitions to wind up (Companies) – L J CIVIL ENGINEERING LTD
Petitions to wind up (Companies) – 777 PARTNERS UK LIMITED
Appointment of Liquidators – G.H.FISHER & SONS(PRINTERS)LIMITED
Appointment of Liquidators – ALCIBIADES LIMITED
Appointment of Liquidators – KINGSWOOD PREMIER CONSULTING LIMITED
Appointment of Administrator – CHESHIRE LAND LIMITED
Appointment of Liquidators – CHANDLER BLAUW LTD
Appointment of Liquidators – SHIMEWAZA PRODUCTIONS LIMITED
Appointment of Liquidators – REAL ESTATE BALANCE (SHARECO) LIMITED
Appointment of Liquidators – YEWHURST 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:
- 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.
- Our monitoring service will alert you to any significant changes in the status of those customers.
- 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.