Lovetts finds that a solicitor's letter prompts payment in 84% of cases. Lovetts has analysed the success rate of the Letters Before Action it has issued over the past year and has found that 84% of cases settle at the letter before action stage. Despite this, businesses are still slow to take action against late payers, and Lovetts found that on average, businesses are waiting 64 days from the date the invoice is due before sending a letter before action. Michael Higgins, MD of Lovetts said: "In some cases we have found that debtors intentionally wait until they receive a solicitor's letter before they make payment therefore, taking action quicker is vital to cashflow. While we understand the reluctance some firms may have enlisting the services of a solicitor and how this might be perceived by their customers, in the 22 years we have been in business, we are not aware of any client who has lost a customer by taking this action." To read Lovetts' news release go to https://www.lovetts.co.uk/
Strong growth remains a prospect for a number of manufacturing sectors. EEF has published an article, 'Which sectors are on track for growth this year?' which advises that its forecast for manufacturing now stands at 0.7% compared with expectations of 1.5% three months ago. However, EEF suggests that there is still some good news around and strong growth remains a prospect for a number of manufacturing sectors. For example, the transport sectors have long been a source of positivity, and this looks set to continue for both motor vehicles and other transport. Similarly, although UK construction growth slowed at the start of 2015 compared with 2014, longer term forecasts suggest the construction recovery should continue to broaden, providing a good grounding for growth. To read EEF's news release go to http://www.eef.org.uk/
August was the worst month for the UK high street since the beginning of the global financial crisis. BDO’s monthly High Street Sales Tracker recorded a massive 4.3% drop in year-on-year sales for August – the biggest fall since November 2008 and the sixth monthly dip of 2015. All sectors suffered, with sales of fashion down 5.5%, homewares down 3.3% and lifestyle goods down 1.3% year-on-year for August. With retailers reporting falling footfall, problems have also been compounded by a sharp decline in online sales too. To view BDO's news release go to http://www.bdo.co.uk/press/
UK corporate insolvencies hit their lowest level since 2007. Graydon has published an article, 'Corporate insolvencies continue to fall – for now', which reports that UK corporate insolvencies fell by 7.5% year-on-year in the second quarter of 2015, and in England and Wales hit their lowest level since the fourth quarter of 2007. In addition, GDP growth per capita has returned to “broadly level with its pre-economic downturn peak in 2008”, according to Joe Grice, ONS' chief economist. In fact, the CBI anticipates UK GDP growth of 2.6% this year and 2.8% next year. To read Graydon's news release go to https://www.graydon.co.uk/
178% increase in the number of UK food and beverage industry companies going into administration or liquidation in the first half of 2015. Grant Thornton's BiteSize quarterly analysis of M&A in the food and beverage sector indicate that in the first six months of 2015 the number of companies going into administration or liquidation increased by 178% to 131 compared with the last half of 2014. However, there has also been an upturn in the number of businesses acquired from administration, with four companies acquired in both the first and second quarters of 2015 - representing a 50% increase on the last six months of 2014. The most noteworthy deal in the second quarter in the bakery and confectionery space was the acquisition of ailing British chocolatier Thorntons. To read Grant Thornton's news release go to http://www.grantthornton.co.
UK exports are on the increase, whilst imports take a dive. Baker Tilly has responded to the latest regional trade statistics published by HMRC which have shown encouraging signs for UK trade. Overall, the value of UK exports has increased by 1.2%, whilst imports decreased by 2.2% compared to the same period last year. Exports to the EU decreased by 6.5% during the last year, whilst of the top five export partners, the USA came out on top with the largest value increase in export trade - up 16% (£4.6 billion) on last year. Rob Donaldson, Baker Tilly’s Head of Corporate Finance, said: ‘It seems clearer by the day that the world economy is increasingly reliant on the developed world, and the US in particular to do the heavy lifting and support growth." To read Baker Tilly's news release go to http://www.bakertilly.co.uk/
Government scraps ban on invoice finance for UK SMEs. Hilton Baird has advised that new government plans to remove restrictions on invoice finance next year will, by allowing small companies to borrow against unpaid invoices from large customers, reduce the impact of late payment on small businesses. Currently, many large companies insist in their contracts that small suppliers do not use invoice financing. Small Business Minister Anna Soubry commented: “By scrapping [big companies’] restrictions on invoice finance, thousands of firms across the country could benefit from faster access to hard-fought funds. . . While invoice finance may not be right for everyone and is absolutely no excuse for late payment, I want small businesses to have the option of using it to increase cash flow.” To read Hilton Baird's news release go to http://www.hiltonbaird.co.uk/
Over a third of respondents to CICM Survey believe that they are exposed to greater trade credit risks than they should be. The latest results from the latest Chartered Institute of Credit Management Credit Managers’ Index, sponsored by Tinubu Square, for Q2 2015, show a continued renewal in business confidence with an all-time index high with the services sector, in particular, continuing its impressive rise - closing up to an all time record high. The survey also looked at how companies manage their own trade credit risk, finding that over a third (36%) believe they are exposed to greater risks than they should be. For those already using dedicated software for Trade Credit Risk Management, 76% stated reporting and analytics were the most important features to them. To read CICM's news release go to http://www.cicm.com/another-
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