search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
Finance Sector Focus The latest news from the sectors that matter to business


Investors shouldn’t panic in face of pandemic, says expert


Investors should sit tight and not get spooked by Covid-19, says a Birmingham wealth management expert. Steve Johnson, managing


partner of Ward End-based investment specialist S Johnson Wealth Management LLP, said that although investors would be worried about the implications of coronavirus, they should not panic as the world’s financial markets would recover in time. He said: “Knowledge conquers


fear and once all the uncertainty over this disappears, the markets will recover. It’s worth pointing out that the markets don’t mind bad news, but what they hate is uncertainty. “From an economic viewpoint,


when supply restrictions lift, demand will surge and suppliers and logistics companies will seek to recover lost profits by putting up prices. This may lead to inflationary pressures, however governments will be loath to impose monetary controls or increase taxation, for fear of stifling growth. “The combination of knowledge


of what is happening plus increased profits will ultimately lead to a bounce in equity prices.”


Steve Johnson: Knowledge conquers fear


‘The current coronavirus crisis shows the value of lots of eggs and baskets – diversity’


Mr Johnson added that there


had been several so-called ‘Black Swan’ events in recent years that had affected the financial markets, including the 9/11 attacks (2001), SARS (2003) and the 2008 banking issues. Of these, 9/11 saw a downturn of 11.6 per cent on the


world’s stock markets, but the recovery only took 15 trading days. SARS was slightly worse, with the markets losing 14.1 per cent of their value, and recovery taking 40 days. While it was still too early to


measure the final effect of Covid-19 on the world’s money markets, Mr Johnson said investors should not panic, and instead remain optimistic. He said: “If nothing else, the


current crisis shows the value of lots of eggs and baskets – diversity. “In the old days, only the very


rich could consider investing in overseas markets via their bankers or stockbrokers. Now, it is possible to invest relatively small amounts via funds across many countries. “Looking to the future, with


recent Government intervention to reduce interest rates, those saving over the longer term in deposit accounts will see their effective returns being negative when set against inflation.” “In general terms if you do not


need the money now, sit still.” Mr Johnson added that his


comments were a general commentary. Investors should speak to their own advisors for advice specific to their circumstances.


Covid-19 triggers profit warnings


Listed companies in the Midlands are issuing profit warnings at an unprecedented rate, with the sharp upturn triggered by Covid-19, according to the latest analysis from accountancy firm EY. Thirty-four profit warnings have been recorded by


EY in the region in the first quarter of this year, more than triple the number (11) issued in the first three full months of 2019. Twenty-two of the warnings issued so far in 2020 specifically blamed the impact of Covid-19 for a material downgrade to their profit expectations according to EY. When analysing all UK profit warnings made in 2020, compared to Q1 2019, EY found the Midlands has suffered a greater year-on-year increase than anywhere else. EY restructuring partner Dan Hurd said: “Covid-19


has profoundly affected businesses’ ability to plan and forecast and is unsurprisingly driving a significant rise in profit warnings. “In the Midlands, the impact on retailers based in the


region is contributing to a spike in warnings. The sector has been heavily impacted by a fall in consumer demand and the closure of physical stores - with the exception of those providing essential supplies such as groceries and pharmaceuticals.”


Dan Hurd: Coronavirus is driving a ‘significant’ rise in profit warnings


Planning must take priority


KPMG is urging businesses to put forecasting, cash preservation, engaging with funders and other stakeholders and accessing Government support initiatives at the top of their to-do list, amidst the ongoing coronavirus crisis. Mark Orton, head of


restructuring at KPMG in the Midlands, is urging businesses to undertake contingency planning in order for them to combat challenges being imposed by the current pandemic. He said: “The best way to


be armed for the challenges of now and beyond is contingency planning.


‘Undertake cash flow forecasts as a matter of urgency’


“Forecasting, cash


preservation, engaging with funders and other stakeholders and accessing Government support initiatives all need to be at the top of the to-do list. “Liquidity is the number one


issue. Undertake cash flow forecasts as a matter of urgency. “The Coronavirus Job


Retention Scheme (JRS), which will see HMRC reimbursing 80 per cent of ‘furloughed workers’ wage costs, is of huge significance and is to be welcomed. “But as it is to be run as a


reimbursement scheme, employers will still be required to make payroll payments, for them then to be recovered once HMRC has established the necessary systems. “To this end, we see funding


Almost a quarter of Covid-19 related profit warnings


were from companies in the travel and leisure sector. Others hit hardest include retailers, housebuilders and media companies. Simon O’Neill, EY’s managing partner in the Midlands,


said: “It will be important to turn to the geographic impact of Covid-19 and to identify what schemes are required to protect and then restore local economies.”


as a key component for many businesses, supplemented by the JRS, and coupled with a greater deployment of ‘Time to Pay’ by HMRC, which relates to deferral of tax obligations, being agreed on a case-by- case basis. This is in addition to sector specific support such as rate payment holidays.”


May 2020 CHAMBERLINK 59


Sector Focus


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  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80