FDs agree that only the fittest will survive

CLOSE to half of North West finance directors feel the recession will benefit their company in the long term, according to research out today.

 A survey by accountancy firm Baker Tilly benchmarked the opinions of senior finance directors across the region, and found that 45% saw the recession as an opportunity to become leaner and fitter than their less efficient rivals.

Indeed, 27% claimed they were looking to acquire another business, while 72% reported to be developing new products or planning to sell into new geographic markets.

But 36% said they were expecting to sell or cease operating parts of their company over the next 12 months, while 30% predicted that between three and six of their top 20 customers would become insolvent over the next 12 months.

Mark Blakemore, managing partner at the Manchester office of Baker Tilly, said: “It is a clear example of Darwin’s survival of the fittest theory, with well run companies benefiting from improved efficiencies and from attrition amongst competitors.”

He added: “Good management of cash and getting invoices paid on time is vital to the ongoing success of any business. It is those companies that have acted early to reduce costs and improve efficiency that are best placed to ride out the recession.”