Severe winter weather will have adverse affects on 84% of businesses
Should last winter’s severe weather return, 84% of businesses said they would be adversely affected – according to recent research by insolvency trade body, R3. Nearly two thirds (61%) of businesses said that staff would be unable to attend work and nearly half (48%) said they would experience reduced profits.
Frances Coulson, R3 President, comments:
“These are worrying findings. Last year the weather caught us all off guard and the detrimental economic impact was widely reported. It seems as though a few days of icy weather this year could easily snowball into a financial disaster, especially for struggling businesses. They should be planning for the worst to avoid taking a real hit if trading suffers.”
The survey found that 6% of business thought that adverse weather conditions could tip them into insolvency. In the retail and distribution sector, the findings were considerably higher than the national average, with 11% of businesses worrying that severe winter weather could tip them into insolvency.
Frances Coulson continued:
“It comes as no surprise that the retail sector is most concerned. Earlier in the year, R3’s Business Distress Index showed that retail businesses are more likely than any other to be concerned about their debt levels (41%). The research also found that 58% of retailers were experiencing a decrease in profit which was 24% higher than the cross sector average.
“Although the last retail figures showed sales were up, people are likely to curb their spending again after Christmas. Retailers also have quarter day to contend with at the end of December, which will mean many will be paying landlords a hefty lump sum. If a business is already struggling and does not think it will withstand the pressures of severe winter weather, it should seek the advice of a professional to ensure it has the best chance of survival.”
For further information please contact:
Will Black, Communications Manager
T: 020 7566 4215 m: 07917 422 485 e: email@example.com
Antoinette Huka, Communications Officer
T : 020 7566 4217 m: 07825 679 462 e: firstname.lastname@example.org
Notes to editors:
- R3 is the trade body for Insolvency Professionals, and is made up of 97% of the UK’s Insolvency Practitioners from all over the UK.
- R3 comments on a variety of personal and corporate insolvency issues. Please contact the press office or see www.r3.org.uk for further information. R3 stands for ‘Rescue, Recovery, and Renewal’ and is also known as the Association of Business Recovery Professionals.
- Methodology note: BDRC Continental conducted 505 telephone interviews with small, medium and large business owners and Financial Directors between 7th and 18th November 2011. Quotas are set by size, region and sector and the data weighted to the profile of UK businesses. The respondent in each case is a senior financial decision maker.
R3 Press Office