In the last month or so I have attended various events where the subject of the UK economy has been a major topic. It is clear that the perception or otherwise of a slowly recovering UK economy is dependent on whether you are being targeted as a voter or a business, especially an SME company. Five years of record low Bank of England base rate however has left savers out of pocket against inflation but borrowers getting better deals. The problem for businesses who have been surviving with low interest rates is what happens when they rise, even by small increments.
The public perception, being generated by politicians and those picking the most apt economic statistics, suggest the worst is over and growth is picking up, unemployment falling and house prices booming. It is however questionable whether fuelling the economy with “help to buy” for new and other property values of £600k actually helps the banks to lend more. It also allows buy to let landlords cash-in but hopefully stimulates more movement in the property market for first time buyers and those who have held back on moving recently. The warning signs are that possibly interest rates will rise earlier, that has an impact on mortgage rates and repayments and that year after year there are significant increases in utility, food and fuel costs that outstrip increases in wages, let alone the inflationary impact.
From a business perspective the view of how government and the banks are helping business is somewhat different. The larger corporate businesses have survived in the main and retrenched by holding cash rather than borrowing, investing or acquiring companies, but this may change. The SME companies however are still finding it hard to get appropriate and cost effective funding from the banks with some not wishing to be rejected with the additional information and forecasts being demanded as part of the loan negotiations. Potentially rising interest rates, consistently high business rates and rents are being pushed upwards. One of the costs that will impact a vast number of smaller businesses in the next year is auto enrolment for pensions with all the associated costs and administrative burden being with the companies.
It is not all doom and gloom but it does look that the recovery of the economy is going to be over a number of years, and certainly after the next UK election, due in 2015.
MW Interim Finance today announces the launch of its new website;-
MW Interim Finance continues to deliver an independent interim finance director/CFO level resource supporting companies undertaking strategic, operational or project based change activities. Focusing on interaction with main Board directors, business owners and leadership teams we provide objective and focused support in:-
“Managing Change Effectively”
Business objectives change over time and MW Interim Finance is able to support business change in a number ways to both SME and larger corporate organisations;-
Forensic operational review, forecasting and profit improvement
- Working capital and cash flow optimisation
- Project appraisal, analysis and business modelling
- Financial control of UK and overseas multi-site operations
- Strategic business planning and development
- Restructuring and business turnarounds
- Merger, acquisition and divestment due diligence and completion activity
- Business and systems integrations
- Evaluating risk and enhancing controls, process and systems
For further information or a confidential discussion about your specific business requirements, please contact Martin Walby FCMA CGMA on + 44 (0) 7876 566875 or email email@example.com
MW Interim Finance attended a number of key networking events and forums this week in central London and Surrey, organised by the Institute of Directors – West Surrey, Menzies LLP and the Surrey Chambers of Commerce. Key themes included; engaging businesses to review their strategy and objectives by recognising the significant shift in consumer demand in the next twenty years; the continued growth of China and India in the global economy; technological changes away from the “physical” to the “virtual” supply of goods and services.
One of the services that MW Interim Finance provides, as a senior level finance resource, is assisting directors and owner managers in formulating, preparing and reviewing corporate strategy and planning. Supporting businesses in meeting their objectives through delivering “lasting change” is a strength of professional interims.
Working with small and medium sized enterprises, (SME’s), it is often the case that, apart from when a company first commences trading, there is no formal annual update of a business plan. In some cases a company grows without a business plan never having been produced. In an economic downturn not having a business plan can hinder the future of the company both in the short-term and strategically.
In these challenging economic times companies find themselves more often operating on a day to day basis and strategic planning is not considered important. The preparation and implementation of a business plan is an essential part of a continuous strategic planning process and key to a review of the business, supporting funding requests and a requirement in any due diligence exercise when assessing an acquisition opportunity or the divestment of the business.
MW Interim Finance can assist you in compiling or reviewing your business plan, For further information email firstname.lastname@example.org
It is a second year of low or no growth in the UK economy with many businesses continuing to struggle. Looking at the small and medium sized enterprise, (SME), sector, low interest rates have enabled companies to survive the downturn and where funding requests have been made, it has been to support working capital requirements and not for growth or expansion initiatives.
Businesses appear to be waiting for something to happen but it is individual company’s that can be the catalyst for stimulating the economy. Few are really carrying out an annual MOT – (Management’s review of Opportunities and growth Tactics), evaluating their strategy and where they want the company to be in a year or two years time.
MW Interim Finance can facilitate these business reviews and assess operational efficiency across their business function’s, provide strategic options and facilitate their implementation to drive growth benefits.
Link2Business has now added MW Interim Finance to the online directory service provided by the British Chambers of Commerce and Ten Alps. The site is a B2B online business and market intelligence resource for SME businesses, the public sector, global trade, energy & environment and infrastructure. MW Interim Finance can be found via the following address , www.Link2Portal.com/business, within the SME option and entering Interim Financial Management within the category search.
Alternatively visit the website www.mwinterimfinance.co.uk for more information on how a professional interim finance director resource can bring benefits to your business.