news 9 Is your firm a ‘zombie business‘?


According to the recently published R3 Business Distress Index, there are 146,000 ‘zombie businesses‘ in the UK – these are businesses that are only able to pay interest on their debts and are having to negotiate payment terms with their suppliers, writes Keith Stevens, partner at Egham and head of WKRR at Wilkins Kennedy LLP


The recession has affected most businesses large and small across the UK and we have seen how a breakdown in the business chain can lead to a domino effect. Cashflow problems can start due to customers negotiating different payment terms, paying much more slowly than usual or even defaulting on invoice payments completely.


Finance can be difficult to obtain and the lack of income has left businesses unable to pay their debts as and when they fall due, and having to do deals with their suppliers to survive.


Many businesses are now stuck in a rut and trapped by their obligations – so how long can this go on? Any change in circumstances such as a rise in interest rates or the loss of a key customer could be disastrous and tip a business on the brink over the edge.


Wilkins Kennedy is a firm of chartered accountants and business advisers and has decades of experience advising businesses and dealing with companies in distress.


As professional experts in this field we offer the most up-to- date information and options


For Wiggle it‘s a tour de force


Portsmouth-based Wiggle – one of the UK‘s biggest online cycling retailers – has moved its ambitious growth plan into the fast lane.


With Team GB‘s medal haul at London 2012 and Bradley Wiggins‘ Tour de France victory placing cycling into the UK spotlight, the company is undertaking an aggressive growth plan.


Having acquired two new facilities in the Harbourgate Development to accommodate the increasing workforce and stock, Wiggle brought in Spaceway to transform the premises into efficient and highly-profitable environments.


The £500,000 project comprised the design and fit-out of a new warehouse, office and bulk pallet storage facility. The office was created over three floors with mezzanine floors and partitioning systems to make the most efficient use of space. All the existing facilities were


completely refurbished, and kitchens and cupboards installed to create a comfortable working environment. The warehouse was fitted with high bay pallet racking, multi-tier pallet racking, mezzanine floors, specialist bike racks and other features.


Wiggle‘s other new building was transformed in just six weeks, with high bay pallet racking installed to accommodate more than 2,000 pallet positions. External repairs were carried out and a new access point between the two buildings created.


Nick Pink, operations director at Wiggle, said: “2012 is an incredibly exciting year for UK cycling. The Olympics and the Tour de France have inspired people across the country to take up this great sport and we have prepared ourselves for the inevitable increase in business this will create with our latest expansion project.“


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – OCTOBER 2012 www.businessmag.co.uk


to achieve the best outcome available.


If you would like to discuss your business problems, in confidence, or would like to know your options then get in touch with your local Wilkins Kennedy office.


Details: Keith Stevens 01784-435561 keith.stevens@wilkins kennedy.com


for business owners to consider for survival and turnaround. We can also advise directors of companies upon their obligations when their business hits problems.


Business owners asking for assistance at the earliest stages can often solve the problem completely, but if this isn‘t possible then we will make sure that you receive advice


Egham: 01784-435561 Reading: 0118-9512131 Guildford: 01483-306318 Winchester: 01962-852263 Romsey: 01794-515441 Amersham: 01494-545570


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