Business news 25 July 2024
Pubs, restaurants and hotels face financial trouble as insolvencies rise by 20%. Rise in insolvencies is good news for some. PMI’s, money-market funds for SME’s, markets, insolvencies & more business news that we thought would interest our members.
James Salmon, Operations Director.
Pubs, restaurants and hotels face financial trouble as insolvencies rise by 20%
The number of pubs, restaurants, and hotels facing financial trouble has increased by 20% in the year to May. This rise in insolvencies is attributed to rising wage costs, stubborn food inflation, high interest rates, and poor weather. Saxon Mosely, from accountants RSM UK, highlighted the Office for National Statistics figures and expressed disappointment in the industry’s performance despite the boost from sporting events like the Euros.
Rise in insolvencies is good news for some
Benefiting from the rise in insolvencies, restructuring specialists FRP Advisory had a “very positive” year with a 23% increase in revenue, reaching £128.2m. The company also reported a profit before tax of £29.9m, up from £15.6m the previous year. Geoff Rowley, the group CEO, highlighted the strong balance sheet and cash collections as indicators of the company’s strength. The average revenue per partner was £1.4m, and the firm expanded its headcount by 19% and acquired two new locations. FRP Advisory’s market share for its restructuring teams increased to 16%. The forensics business also had a successful year.
UK business activity expanding faster than expected
The UK private sector economy has expanded faster than expected, with the S&P Global flash composite purchasing managers’ index (PMI) rising to 52.7. This indicates sustained and steady growth for the UK economy, which has been above the 50-point threshold for nine consecutive months. The manufacturing sector has seen a 24-month high, while the services sector has also shown improvement. The survey suggests that businesses have gained optimism about the future, reporting a surge in demand and increased hiring. Inflation across the private sector has fallen to a three-and-a-half-year low, providing a welcoming picture for the new Government.
Neobroker launches money market funds for small businesses
A neobroker called Lightyear has launched business accounts for small businesses, offering them access to money market funds. These funds, often referred to as cash bonds, invest in safe assets such as cash and cash-like instruments. Small businesses have long struggled to access finance, with many resorting to personal credit cards. Lightyear aims to provide an alternative to traditional banking options, which often come with stringent deposit criteria, high fees, and uncompetitive interest rates. The company’s analysis shows that businesses hold more cash than credit, but three-quarters of those savings earn just 1.7% interest. Lightyear’s business account offers access to Blackrock’s money market funds, with customers earning 5.15% AER (variable) in GBP on their savings. The account also provides access to international stocks and ETFs.
Wind Power
In the first major plan announced by Great British Energy, the government’s new company aims to increase renewable energy using £8.3bn in state funding over the next five years.The government is to team up with the Crown estate and use British seabed owned by the Crown Estate to help build wind-farms that will power up to 20 million homes.
Markets
PMI data yesterday showed the UK services PMI expanded to 52.4 points in July, from 52.1 in June. The manufacturing PMI climbed to 51.8 points, from 50.9. The services reading was a two-month-high, while the manufacturing PMI spiked to its best level in two years.
Yesterday, the FTSE 100 closed down at 8153 despite the new PMI data showing improved UK business activity, as a tech-focused sell-off on Wall Street weighed down global markets. Overnight in the US the tech rout continued with S&P 500 dropping 2.31% to 5427.13 and the NASDAQ falling 3.64% to 17342.41.
In the US, stocks were mostly lower after Google parent company Alphabet and electric car maker Tesla both missed earnings estimates – sparking a sell-off in the broader technology sector. US investors are reassessing the promise of artificial intelligence (AI) triggering the $1 trillion rout in the Nasdaq as investors began to wonder just how long it will take for the substantial investments in the AI to turn into profits. The Nasdaq’s fall was the worst day fro the index since October 2022 with all the AI related companies such as Nvidia, Broadcom and Arm Holdings leading the drop.
Alphabet reported ad revenue of $64.62 billion — up from $58.14 billion last year, showing that Google’s advertising business continues to grow, though at a slower pace than in the first quarter, after rising inflation and interest rates tightened marketing budgets in 2022 and 2023. While YouTube ad revenue missed estimates, it still grew to $8.66 billion compared to $7.66 billion in the year-ago quarter. Though it’s the largest video platform in the world, it faces increased competition from social video sites like TikTok. The large capital expense connected to AI caused the company’s stock to sink more than 5% for its worst performance since January.
Tesla reported second-quarter earnings that missed expectations amid ongoing pressure in its auto business. Elon Musk’s electric vehicle firm on Tuesday announced that automotive revenue declined 7% year on year in the June quarter to $19.9 billion while its adjusted earnings margin also fell. Tesla plunged 12% after CEO Elon Musk offered scant details about his company’s self-driving vehicle initiative.
This morning on currencies, the pound is currently worth $1.289 and €1.188. On Commodities, Oil (Brent) is at $81.3 & Gold is at $2373. With stock markets, the FTSE 100 is down 1.17% at 8058 and the Eurostoxx 50 is down 1.7% at 4778.
UK deals surge by two thirds as companies chase growth
The value of UK deals has increased by 66% to £68bn in the first half of the year, as companies seek to expand and acquire market rivals. This growth in dealmaking surpasses other countries, with global deal value rising by 5% to £1.04tn. The surge in UK deals has been driven by corporates with capital who are pursuing growth, rather than private equity firms. The industrial and services sectors saw the highest activity, followed by the consumer markets sector and the technology, media, and telecoms industries. “The UK M&A activity in the first half of the year has mirrored the performance of the second half of last year, reflecting a cautious confidence in the current deals market,” said Lucy Stapleton, global head of deals at PwC UK.
Defence
Britain and Germany signed a defence pact, pledging to strengthen their defence industries, improve cybersecurity and boost the effectiveness of joint operations.
Revolut
The London based Fintech finally secured a banking licence after a three year wait from regulators, enabling the firm to start providing overdrafts and savings products to its 9 million customers.
Lloyds
Lloyds’ profit beat expectations as an improved economic outlook allowed Britain’s biggest mortgage lender to reduce the funds it sets aside for bad loans.
Vodafone
Vodafone’s revenue came in ahead of market predictions, with particularly strong growth in Africa offsetting a decline in their biggest market, Germany.
Reeves expected to increase taxes by £25bn
Former Bank of England policymaker Michael Saunders expects the Chancellor to use an imminent review of Labour’s fiscal inheritance to justify tax increases of up to £25bn. Rachel Reeves will “kitchen sink” the bad news in the review to “allow her to announce corrective measures to return the public finances to a sustainable path,” Saunders said. These would likely be achieved by an increase in capital gains and inheritance taxes, or by expanding national insurance and extending the freeze on income tax thresholds by a year. His comments came as Sir Keir Starmer declared the “crisis” in the UK’s public finances was “more severe” than he had expected.
Council tax hikes on second homes could backfire
Experts are warning that doubling or tripling council tax on second homes is backfiring as homeowners decide to flip their properties so they are classed as small businesses, which do not have to pay council tax. Small businesses can then claim 100% tax relief on business rates. Colliers estimates that this will cost the Treasury more than £170m a year, up from £150m in 2022. The real estate company’s John Webber said: “If Cornwall Council believes tripling council tax on second homes is the answer to deterring second homeowners and solving the local housing crisis, they are living in cuckoo land.”
Latest Insolvencies
Petitions to wind up (Companies) – LOS ANGELES LTD
Appointment of Administrator – PROFOUND WORKS LIMITED
Appointment of Administrator – ASTRADENT LIMITED
Appointment of Administrator – ASTRADENT (2) LIMITED
Appointment of Liquidators – 3L CARE (ATHERTON) LIMITED
Appointment of Liquidators – PFB PROPERTIES LLP
Appointment of Administrator – OAKES GREEN BARNSLEY LIMITED
Appointment of Administrator – TEAMDRAINAGEUK LTD
Appointment of Administrator – DIGITAL GURUS RECRUITMENT LIMITED
Appointment of Liquidators – SARUM PR LIMITED
Appointment of Administrator – RETHINK PROFESSIONAL SERVICES LIMITED
Appointment of Administrator – COMPASS CLINIC LIMITED
Appointment of Administrator – MIRADA LIMITED
Appointment of Liquidators – JHIRST LTD
Appointment of Liquidators – PETER OBORN ASSOCIATES LTD
Appointment of Liquidators – ALBION HOUSE CONSULTING LTD
Appointment of Liquidators – MPK LIMITED
Appointment of Liquidators – DISTINCTIVE DESIGN SOLUTIONS LIMITED
Appointment of Liquidators – KAIZEN ONLINE CONTENT CONSULTANCY LTD
Appointment of Liquidators – GOLDFINCH CONSULTING LTD
Appointment of Liquidators – PEREGRINE LEASING LTD
Petitions to wind up (Companies) – THE PERFUME ROOMS LTD
Appointment of Administrator – HOLLINS HOMES (LOVECLOUGH) LIMITED
Appointment of Administrator – DIGITAL HOME VISITS LTD
Appointment of Liquidators – PREMIERTASK LIMITED
Petitions to wind up (Companies) – BIG HELP PROJECT LTD
Petitions to wind up (Companies) – YING’S RESTAURANT LIMITED
Appointment of Administrator – CHARLES HENSHAW & SONS LIMITED
Appointment of Liquidators – EASTER ROSS DEVELOPMENT COMPANY LTD.
Appointment of Liquidators – AZINI 2 (GP) LIMITED
Petitions to wind up (Companies) – 1953SANDRA LTD.
Petitions to wind up (Companies) – PRIVE GLOBAL SPORTS LTD
Petitions to wind up (Companies) – FISKER (GB) LIMITED
Petitions to wind up (Companies) – DATA CENTRE INVESTMENTS LTD
Appointment of Liquidators – AXCELLION LIMITED
Appointment of Liquidators – J-LOUISE RILEY LTD
Appointment of Liquidators – JAMES A HARRIS LIMITED
Appointment of Liquidators – BIG SKY MARKETING LIMITED
Appointment of Liquidators – AUTUMNPARK LIMITED
Appointment of Liquidators – AUTUMNPARK HOLDINGS LIMITED
Appointment of Administrator – SELINA HOSPITALITY PLC
Appointment of Liquidators – LOGICAL INSIGHT LIMITED
Appointment of Liquidators – FREMONT & ARMITAGE (HOVE) LTD
Appointment of Liquidators – RSJ (BUDE) LTD
Appointment of Liquidators – RSJ (BUDE) HOLDINGS LTD
Petitions to wind up (Companies) – AIRE VALLEY ESTATES LIMITED
Appointment of Administrator – 107 STATION STREET LIMITED
Appointment of Administrator – LEVIN GROUP LTD
Appointment of Administrator – SELBY CONTRACT FLOORING LIMITED
Appointment of Administrator – A P V MARINE LIMITED
Appointment of Liquidators – DR PJ GOULDING LIMITED
Appointment of Liquidators – MJS & ASSOCIATES LIMITED
Appointment of Liquidators – INDEPENDENT PENSION SPECIALISTS LIMITED
Appointment of Liquidators – ELLARE LIMITED
Appointment of Liquidators – WESSEX FENCING LIMITED
Appointment of Liquidators – NETWORK HOMES INVESTMENTS (STOCKWELL) LIMITED
Appointment of Liquidators – DUBOIS REALISATIONS LTD
Appointment of Liquidators – METHOD SEARCH LIMITED
Winding up Order (Companies) – ACSUK CO LTD
Winding up Order (Companies) – MANIFAKTURA LIMITED
Winding up Order (Companies) – LASERCARE CLINICS (HARROGATE) LIMITED
Winding up Order (Companies) – COSMECEUTICALS LIMITED
Winding up Order (Companies) – LCHMG LIMITED
Winding up Order (Companies) – CELLITE CLINIC LIMITED
Winding up Order (Companies) – ABC LASERS LTD.
Appointment of Liquidators – GEORGE STREET DEVELOPMENTS LIMITED
Petitions to wind up (Companies) – ELITE RESIN LIMITED
Petitions to wind up (Companies) – ADAM REED LIMITED
Petitions to wind up (Companies) – KEYWORKER HOMES (MACCLESFIELD) LIMITED
Petitions to wind up (Companies) – DOCUMENTS AND VISAS LIMITED
Petitions to wind up (Companies) – TRANSFORM INNOVATE GROUP LTD
Petitions to wind up (Companies) – POXELL LTD
Appointment of Liquidators – KINNOULL PARTNERSHIP LIMITED
Petitions to wind up (Companies) – FAST LABOUR CONTRACTORS LTD
Appointment of Liquidators – HYBRID LED PARTNERS LTD
Appointment of Liquidators – LOMARSH LIMITED
Appointment of Administrator – MA-SHELL (MOTOR CYCLES) LIMITED
Appointment of Administrator – COUNTREESIDE LIMITED
Appointment of Liquidators – SELHURST FLYERS LIMITED
Appointment of Liquidators – A. YOUNG (WHOLESALE JEWELLERS 1981) LIMITED
Appointment of Administrator – A CATLOW CIVIL ENGINEERING LIMITED
Appointment of Liquidators – GEORGE JEFFREY HOLDINGS 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 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.
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.
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 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.
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.