Summer 2010

THINGS ARE LOOKING UP

DESPITE all of the misgivings, 2010 has so far turned out to be a better year than most people expected. Banks are lending again, albeit at lower loan-to-value levels and higher margins, but at least there is some liquidity in the marketplace. Consumers have been remarkably resilient and maintained spending despite unemployment creeping up.

Private equity houses are very active and the corporate finance marketplace is enjoying a bit of a boom with deals being done at both the premium and distressed end. All in all the majority of businesses we deal with have had an excellent first half with good growth and better profits, the latter being achieved despite margin pressure due to active cost controls and better productivity.

Does this mean we can

relax and start enjoying the ride? Certainly not. The road ahead could still be very bumpy. HMRC report that more than 170,000 businesses have payment plans in place – effectively borrowing from the government – and although HMRC will honour these they are looking to get their ‘books’ back in order and will jump on any defaulters.

by Nik Askaroff

Unemployment is still rising and widely anticipated massive government cuts will start to bite. The weak pound and high oil price will fuel inflation as import costs rise and this will hurt margins as it will be difficult in a soft market to pass these on. The good news is that we know this so can plan for it. Indeed any well run business will already have their plans in place. The full extent of what the ‘new’ government has to do to address the deficit, and how long this takes, will take years to fully determine. For now, though, you should be looking aggressively for areas to add business and margin while controlling all costs. Then, hopefully, the remainder of 2010 will be as good as the first six months.

EMC bags a choccy treat for children

EMC has donated a giant nine-stone Easter egg to the Royal Alexandra Children’s Hospital in Brighton after successfully bidding for it during a charity auction held at the Brighton Snowball.

The egg, made by Brighton firm Choccywoccydoodah, was the star auction item at the annual event organised by Heart FM and attended by more than 200 business people and their guests. Money raised was shared by the Have a Heart and Hilton in the Community charities. Pictured with the egg are (clockwise from top left) Nik Askaroff, David Smith, Martin Stanton and Michael Pay.

Confidence at four year high

BUSINESS confidence is at its highest level in four years. A survey of 11,000 small business owners by accountants BDO showed an optimism index rising from 99.4 to 103.2 in March – its highest level since the summer of 2006. Output expectations also increased to levels not seen since the third quarter of 2007.

Optimism is also returning to the junior market. The Taking Aim survey, conducted by law firm Faegre & Benson and accountants Baker Tilly, showed that a majority of both institutional investors (63%) and AIM companies anticipate an improvement in AIM’s performance over the next 12 months, with many expecting a full recovery in market valuation and levels of activity.

Find out more about EMC and the people who make up our ‘mobile boardroom’ of senior executives – Pages 3 – 6 Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8