4
news opinion
Have you noticed how many times Ed Balls, the shadow chancellor, uses the phrase, “the cost of living crisis“? He has obviously been told that if you repeat the word “crisis“ enough times, people will simply assume that a crisis exists
Similarly, the chancellor George Osborne constantly uses the phrase “hard-working people“, and keeps repeating the mantra that the Conservatives are the only party on the side of such people.
It’s really best not to listen to politicians who have all the subtlety of snake-oil salesmen. Listen to business people instead. They tend to talk far more sense.
And if you do, you will hear some very positive noises as we look forward to the brighter days of spring.
For instance, Britain’s bosses are the world’s most confident. Six out of 10,
according to a recent PwC global survey, believe the UK economy will improve over the next 12 months – a higher level of confidence than any other nation.
A whopping 93% are confident about their company’s own turnover prospects over the next year – much better than the global average of 85%.
They are right to feel so buoyant. The jobs outlook is improving, manufacturing is posting some positive results, and the focus of many CEOs has shifted from survival back to growth.
This positivity was reflected at the Roundtable debate we staged at Cliveden last month (see our Thames Valley and iPad editions). A key theme that was common to all successful businesses at the event was how remaining nimble – quick to adapt to changing circumstances – was a vital ingredient of success. So too was the focus on people, and not just profits.
Get the people right, and the profits will follow.
David Murray Publisher
Fall in
number of ‘Zombie
businesses’
The number of ‘zombie businesses’ in the Thames Valley has dropped dramatically, according to local insolvency experts.
‘Zombie businesses’ is the term given to companies that are only able to pay the interest on their debts. Numbers in the South East have fallen from 17,000 in November 2012 to just 5,000, according to research by insolvency trade body R3.
At Herrington & Carmichael LLP we believe in the traditional values of excellent service and value for money. Our clients appreciate our proactive and friendly approach to all their legal concerns. This is why we are a leading law firm for business and private individuals in the Thames Valley region.
We have specialist teams to help with all your legal
♦ Company & Commercial ♦ Employment ♦ Dispute Resolution ♦ Debt Recovery ♦ Real Estate
Plus all aspects of Private Client law including Wills, Probate, IHT, Residential Conveyancing and Family issues
Waters Edge Riverside Way Watchmoor Park Camberley Surrey GU15 3YL Tel: 01276 686222
27 Broad Street Wokingham Berks RG40 1AU Tel: 0118 977 4045 Email:
info@herrington-carmichael.com
www.herrington-carmichael.com www.businessmag.co.uk
Julia Branson, from The Southern Region – Thames Valley Group of R3 and head of Julia Branson Restructuring Support LLP in Reading, said: “While we have seen ‘zombie business’ numbers fall and stabilise, there hasn’t been a corresponding rise in corporate insolvencies. Encouragingly, many struggling businesses will have used the unexpected grace period between recession and recovery to put their house in order, allowing them to spring
‘back to life’. ‘Zombie businesses’ have been among the chief beneficiaries of the relatively benign trading environment in the past few years.
“However, our research also shows thousands of businesses moving beyond ‘struggling but surviving’ into potentially dangerous territory.”
R3’s research shows there are 103,000 ‘zombie businesses’ in the UK, equivalent to 6% of companies in the country with a turnover of over £50,000. The South East, which includes Oxford, Reading, Guildford, Newbury and Woking, has one of the lowest percentages of ‘zombie businesses’, at just 2%.
Branson commented: “It is difficult to pinpoint any one reason why there are fewer ‘zombie businesses’ in the South East than elsewhere, potentially it is the previous good fortunes of the area for business, but it could be that business owners are taking advice early and speaking to their creditors, at least I would like to think that has happened.”
R3’s research also showed that some 29,000 businesses in the South East were having to negotiate their payment terms with their creditors.
Details:
www.r3.org.uk
Leumi ABL finances £7m package for Magal Group
Leumi ABL has supported the Magal Group with a £7 million asset-based-lending facility, comprising invoice discounting, a plant and machinery loan and a further additional loan to assist with the cost of tooling.
The asset-based lending firm also introduced the Magal Group to Bank Leumi (UK) which became its banker, offering a range of services including VAT deferment and BACS.
Based in Reading, Magal specialises in the manufacturer of automotive components – particularly thermostatic controls and steering components for companies such as Mercedes and Jaguar Land Rover – and has led the field in automotive mechanical engineering for more than fifty years.
Magal’s requirement to seek a more flexible funding provider was triggered by fast growth in the UK. While the company has also invested in China, India, Turkey and France, Leumi ABL is funding only the UK group.
Early negotiations included meetings with Leumi ABL CEO Paul Hird and Bank Leumi (UK) CEO Larry Weiss. A combination of access to the highest-level decision makers and Leumi’s ability to offer more funding than any other funding provider, gave Magal the reassurance that the Leumi proposition could meet its needs, both now and in the future.
Advisers to the deal were KPMG and Shoosmiths. Pitmans acted as the company’s lawyers.
THE BUSINESS MAGAZINE – THAMES VALLEY – FEBRUARY 2014
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60