SMEs suffer turnover fall
A THIRD of SMEs in Yorkshire have seen a significant fall in sales over the last 12 months, according to new figures.
Analysis of accounts filed by more than 2,200 companies in the county with turnovers of between £2m and £100m found 35% had suffered a loss of turnover of 10% or more.
The research by Baker Tilly and Company Watch also suggests 35.8% of companies are also experiencing a slide in profits.
Mark Ranson, partner at Baker Tilly Recovery and Restructuring in Leeds, said: “These statistics are indeed worrying, particularly after the squeeze on public spending announced at the Comprehensive Spending Review. Further cuts will add further pressure to an already tight market and it will no doubt be suppliers down the chain that will bear the brunt.
“This is the time to take action. A proactive attitude is the key and there are a number of essential steps to take with any business in distress to maintain stability. Fully assess and review your cash flow and keep a close eye on your credit. Monitor the impact of the cuts on your own key suppliers. Be firm with your own customer base, do not continue to supply without payment as agreed as this could increase your exposure.
“Natural inclination may be to brace for the worst. Remember that your competitors will face a similar position and not all will be able to weather the storm. If you are able to withstand the initial impact to your business, the competitor fallout could present further opportunities in the market.”
