corporate finance roundup 45 How counting the cash gap can
Tough trading conditions is one reason and undoubtedly true of the recent recession years. Insufficient sales leave businesses unable to generate cash to pay creditors, including the tax man, employees or landlords, and unable to replenish stock or meet loan obligations.
Cut-throat discounting also has a part to play. Despite an economic improvement, consumers in both a business and a domestic environment remain cost conscious when it comes to spending their hard-earned disposable income.
So, how do you protect yourself and continue to trade profitably, meet obligations as they are due and generate cash for future investment in stock, employees and capital expenditure?
balance sheet and most importantly cashflow forecasts.
2 Ensure your budgets identify gaps in funding – in particular for a seasonal business there will be fallow months – have you got sufficient resource to close the cash gap?
3 Keep close to your bankers, shareholders and suppliers – can you seek additional working capital, have you the opportunity to sell off non- performing assets, is there scope to obtain creditor payment stretch with your suppliers, for example?
43679 S&B Corporate Deal advert-v4 copy.qxp:Layout 1 26/11/14 09:18 Page 1 1 Develop robust profit and loss,
4 Work closely with your accountant. We love running the numbers and we will challenge assumptions and create budget flex. We can work together with you to create strategies to close the cash gap.
With the strong possibility of a rise
RankedNational Leaders (outside London) for Corporate/M&A by ChambersUK 2015
‘Regularly cited by clients as one of the best alternatives to City firms for corporate transactions… …”They have a City-quality practice that just happens to be based in Guildford" ‘
Chambers UK 2015, A Client’s Guide to the UK Legal Profession
Formore information please contact Keith Syson, Head of Corporate, on
keith.syson@
stevens-bolton.com
save your business from insolvency When a business becomes insolvent it’s a painstaking process as well as an emotional time for the business owner and staff involved. But why does this happen and what can you do to avoid it? David Tann, restructuring and recovery partner for the Thames Valley region at top 20 UK accountancy firm, Wilkins Kennedy LLP, explains
in UK interest rates thereby pushing up the cost of borrowing and indeed the ability to both service and repay loans, having an existing cash gap strategy becomes even more key than ever before.
It helps to recognise the signs of insolvency early, so look out for key indicators such as:
• Is the overdraft always at its limit?
• How is cashflow? If it is tight paying suppliers can be difficult.
• Are company creditor and debtor days growing?
• Does your company have unsatisfied County Court Judgements (CCJs) registered against it?
If you recognise any of these signs at your company, then assistance from experts in restructuring and recovery may be worth investigating.
Wilkins Kennedy LLP is based in Reading town centre and offers a fully comprehensive restructuring and recovery service, covering the whole of the Thames Valley region.
Spotting the signs of insolvency early is key to thriving or surviving. So, ask yourself – has your business got a cash gap and how do we ensure it is closed off?
Details: David Tann 0118-9512131
david.tann@wilkinskennedy.com www.wilkinskennedy.com
Management buyout of
the Romans Group backed by Bowmark Capital
S&B advised management
Acquisition of Grapple Mobile Limited
S&B advised the buyer Monitise plc
Acquisition of Super Screens
S&B advised the buyer AutoRestore, a Belron group company
Sale of Metalogic
Holdings Limited to Jonas Computing (UK) Limited, part of the Constellation Software Inc group
S&B advised the seller
Sale of Opta Sports Data Limited to
Perform Group plc S&B advised the sellers
Management buy-out of MedicX Holdings Limited backed by Octopus Capital
S&B advised management
Sale of Satellite Information Services Limited outside broadcast business to various trade buyers
S&B advised the seller
Sale of entire issued
Equity fundraising backed by
Octopus Ventures S&B advised management
share capital of The Logic Group Holdings Limited to Barclaycard
S&B advised the sellers
www.stevens-bolton.com THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER14/JANUARY15
www.businessmag.co.uk
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