More than a third of Yorkshire & Humber Businesses have less than 8 weeks ‘cash in the bank’ according to latest survey
This is one of the worrying headlines from recent research by the Association of Practising Accountants (APA) following their survey of 1,024 owner-managed businesses across the UK.
Members of the APA – an association of leading UK Accountancy firms, including Armstrong Watson – surveyed their clients on the current impact of the Coronavirus on their business and how important the government support schemes continue to be for their survival. Businesses were also asked about cash availability and it was clear from the results that a large proportion (37%) of Yorkshire and the Humber Businesses, do not have enough money to see them beyond 8 weeks.
Other key findings from the region included:
- Over a quarter of respondents have seen turnover reduce by over 70% since lockdown measures were introduced
- Over 66% of Yorkshire Businesses are using the government’s Job Retention Scheme, of which nearly 90% view as critical to maintaining staff
- Just under 20% have applied for the government’s Coronavirus Business Interruption Loan Scheme (CBILS) and of those who have, 68% suggested that it could work better
Commenting on the findings, Paul Dickson, CEO and Managing Partner of APA Member firm Armstrong Watson said,
“This is a very worrying time for business owners throughout our regions and across a huge diversity of sectors too. Whilst the government has put in place a number of welcomed schemes to support owner-managed businesses over the initial period, mid-term and longer term the picture is going to be sadly much graver for some as we all adapt to a ‘new normal.’
“Our message to clients is to look beyond what’s happening now, carefully assess your business position over the coming months as we gradually move out of lockdown.”
“Coming to terms with a potential new reality will be difficult but preparing for it is essential, whether that means utilising alternative funding, considering restructuring or optimising tax liabilities, these are just some of the many options businesses could take to aid survival.”
Paul Dickson, Armstrong Watson
Armstrong Watson is hosting a free webinar with their cash flow experts on Thursday 30th April in response to the findings of the APA survey, looking at business sustainability post COVID-19 and offering advice on the actions business owners could be taking now to ensure longevity. To register for your free place visit www.bit.ly/AWebinars
The firm is also offering business owners who are worried about their cash flow and business viability, a free, no obligation consultation with Rob Adamson, Restructuring Partner, by contacting him on 0797 0731 804 or emailing firstname.lastname@example.org