Business News Round Up (09/02/2023)
A third of UK businesses now have a dedicated sustainability team
Research by Hays points to growing prominence of sustainability professionals within UK businesses both large and small, but a lack clarity over where responsibility lies is still apparent at many firms.Around a third of UK firms now have a dedicated sustainability team within their business, according to fresh survey findings that suggest environmental, social, and governance (ESG) issues are fast becoming critical to the inner workings of corporations both large and small. The survey, which was carried out by workforce solutions and recruitment firm Hays, took in the views of more than 3,200 UK-based professionals in a bid to gain insight on how the size of an organisation might impact its sustainability management and responsibilities. Published earlier this week, the findings show more than a quarter – or 26 per cent of respondents – said their organisation had a small, dedicated team in charge of overseeing sustainability. A third of these respondents said they worked for a very large organisation of more than 1,000 staff, while 29 per cent were from a large company of between 251 and 1,000 employees. A further 23 per cent of these respondents said they worked for a medium sized firms – classed in the survey as having between 51 and 250 employees – while 16 per cent said they belonged to a small company of less than 50 staff. In addition, a further seven per cent of those surveyed said they had a large team dedicated to sustainability within their business, meaning that overall, 33 per cent of respondents to the survey had a sustainability team within their business.
https://www.businessgreen.com/news/4074185/survey-uk-businesses-dedicated-sustainability-team
Quarter of SMEs have no cash flow projection
Almost a quarter of SMEs are at risk of serious cash flow problems as they do not have basic cashflow projection processes in place, according to a new poll by UK Top 10 accountancy firm Azets. The findings were revealed following a financial resilience webinar attended by nearly 200 SME leaders with nearly 30% of attendees disclosing that they either did not have a cash flow projection process (22%) or that they did not know whether there was one or not (6%). The revelation comes as insurer Allianz Trade is forecasting a 15% increase in insolvencies. Donald Boyd, partner & UK head of growth at Azets, is urging business owners to put cashflow projections in place for a minimum of 13 weeks. Speaking on the regular Azets’ ‘Bang the Drum’ podcast, he says: “Far too many SMEs still run their business based on cash in their bank account. Cashflow forecasting is critical to a healthy business and SMEs need a minimum 13-week cashflow projection or risk running out of cash. The most important thing you can do is to know exactly what’s happening in the next 90 days in your business, so you can seek help, if necessary, based on early warning signs. A large number of SMEs are receiving cash after 60 days or longer but are having to pay out within 30 days because of updated payment terms during the pandemic. This stifles growth because SMEs struggle to capitalise on opportunities, especially without appropriate financial forecasting.”
https://dailybusinessgroup.co.uk/2023/02/quarter-of-smes-have-no-cash-flow-projection/
Study confirms strong development levels throughout region
New statistics shows that 25 new development projects began in Manchester and Salford city centres in the past 12 months. The crane survey, by professional services company Deloitte, measures the amount of development projects taking place across both Manchester and Salford and their impact. The 25 new projects includes 17 new residential developments – the highest since 2018 – while 2,734 homes were delivered to the market. The results in the report are consistent with the area’s position as an attractive proposition for investors, developers, businesses, and residents alike. Salford is now recognised across the sector as a driving force in the region with a commitment to sustainable growth and regeneration at the heart of its approach. Outside London, the region continues to lead the way in construction activity, helping to make positive impacts and economic growth across the two cities. On the residential front, Salford city centre, has seen the largest share of development, with 13,578 homes now having been completed since 2014. Looking to the future, the number of new residential projects starting in this area of the market show no signs of slowing down. Residential developments currently onsite include Greenhaus, 96 Passivehaus-accredited affordable apartments as part of The English Cities Fund £1bn Salford Central masterplan.
Scottish insolvencies fall as UK stands on the brink of recession
The number of companies filing for administration in Scotland fell by a quarter in 2022, despite rising inflation, weaker trade and geopolitical uncertainty continuing to put businesses under pressure. Analysis of notices in The Gazette by Interpath Advisory revealed that a total of 32 companies fell into administration in Scotland last year – down from 43 companies in 2021. This trend has continued into 2023, with three administrations in January, compared to six in December. It does not reflect the UK picture, however, which saw a total of 1,039 companies fall into administration in 2022 – up from 710 companies in 2021 – but nevertheless still well below pre-pandemic levels of 1,422 in 2019 and 1,337 in 2018. The rising number of UK insolvencies can be seen across a wide range of sectors, with retailers and restaurants experiencing particular challenges as the year drew to a close. Across the UK, in 2022, there were 96% more filings for insolvency (100 appointments) in the retail sector in comparison to 2021, and 67% more filings (70 appointments) in the leisure and hospitality sector. The pandemic and broader economic headwinds have made the last few years a particularly tough period for those working across the UK retail and hospitality industries, with a number of high profile appointments in recent months, such as Joules, AMT Coffee, and Byron Burger. Alistair McAlinden, head of Interpath Advisory in Scotland, commented: “Businesses in the retail and casual dining space continue to face one challenge after another – from rising input costs and interest rate rises, to supply chain disruption and staff shortages, not forgetting falling consumer spend due to the spiralling cost of living. Many are also finding that they have surplus stock on their hands, as demand has dampened, and inventory levels have continued to rise. “
https://www.insider.co.uk/news/scottish-insolvencies-fall-uk-stands-29162455