Results from BDO Stoy Hayward’s latest survey of UK financial directors, accountants and business advisers, show 34% of FDs at present do not feel comfortable their company has sufficient access to capital and fresh sources of finance.
More than 30% of UK FDs said that, if their company was experiencing financial difficulties, they would continue as normal, hoping for things would improve rather than seek advice.
Other findings showed almost 30% of respondents never assessed the impact of current economic conditions on their business; 15% never produced management accounts; only 3% would turn to a turnaround director, the majority turning to their bankers; and 35% had not carried out a robust analysis of the financial health of their business in six months.
Mike Prangley, BDO Stoy Hayward business restructuring partner, said ‘some corporates are showing signs of reluctance to accept there are problems’. ‘All the findings show a severe change of mindset is needed. Confidence has been riding high in the financial markets but with the recent credit crunch still not fully played out, it is apparent that defence strategies, increased awareness and an understanding of turnaround services and where to find them are required.’
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