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Winter weather to cause issues for small firms

Date Added: 19/12/2011  

Cold winter weather is likely to have a negative impact on the financial health of small companies in the UK and may even lead to some being in danger of getting a winding up order.

Research conducted by the insolvency trade body R3 found 84 per cent of businesses believe they are going to be adversely affected by snow and ice in the coming weeks.

Almost half of the respondents (48 per cent) claimed their profits are going to be down as a result of the winter weather, while 61 per cent of the firms to take part in the study said some members of staff are going to find it hard to make it into work if it snows over the winter.

President of R3 Frances Coulson described the findings of the research as "worrying", adding: "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."

She therefore urged those companies already in need of business debt advice to make sure they are prepared for the worst, so if there is an extended period of bad weather over the course of the winter, they will not be affected too badly.

It was also discovered in the research how six per cent of the companies to respond believe bad weather could tip them over the edge into insolvency, showing a number of firms are clearly already worried about the threat of being served with a winding up order.

In the retail and distribution sectors, this figure jumped to 11 per cent, as these industries would be worse hit by snow and ice than other industries.

This comes shortly after R3 president Ms Coulson said the latest figures for retail companies show they are in a "volatile" position at the present time.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Julie Cutts

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