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Brexit versus cash?

By Gary Pettit

PBC Business Recovery

HOW many readers like change? Do you remember the constant barrage of doom and gloom surrounding the Millennium Bug or what about GDPR? Let us face it, in general we all fear changes that may interfere with our comfort zone.

The ‘B’ word has been with us for two years and, personally, I have adopted the position of why write about it? After all, nobody knows what post EU departure means so anything written pre-Brexit surely must be rhetoric or simple guesswork. Admittedly, the older generations know what it was like before we joined but times have moved on since then and the economic world is vastly different.

So, let us focus on what we do know.

I bet when asked about your salary you cite your gross earnings. However, gross earnings cannot be taken into account when it comes to paying the bills; you have to look at your take home pay and hopefully it is sufficient to meet your domestic needs. Similarly, in business there seems to be a heavy focus on the level of turnover rather than the net profit or, more importantly, cash flow and the ability to meet debts as they fall due.

Through 2018, the average amount owed to a company was £80,141 rising to £82,000 for professional services. Late payments are the most significant threat to SMEs and the longer they remain unpaid, the higher the risk of an inability to collect. If your business had to write off £80,000, how much additional business would you need to secure in order to recover that loss? Going back to the salary scenario, if your employer paid you late could you still meet your debts as they fell due? There is little difference.

At PBC we would say most of our clients have suffered from poor cash flow. Some are due to poor credit control, some through a slow burn as the business suffers for one of many reasons, while others fall victim to a one-off catastrophic write off. In one particular case PBC are handling the company suffered a seven-figure debt as their customer went into liquidation, bringing the company to its financial knees. Thankfully, the director took early advice and we had time to restructure his company via a company voluntary arrangement, safeguarding all of the employees and the company going forward.

So, our message to you is Brexit is currently uncertain whereas cash is king. Look after your cash controls and let Brexit unwind in whatever format it is destined to take.

Should you have an insolvency-related issue or a corporate dispute then contact Gary Pettit and PBC Business Recovery & Insolvency on 01604 212150 or email

 

 

PBC Business Recovery and Insolvency has recently appointed former Relationship Director, Nick Bonser as its Operations Manager.

Nick, who has 35 years’ experience in banking, was previously with Nat West/RBS in Leicestershire and Northamptonshire. His previous roles have included commercial banking roles and branch management.

He will oversee the day-to-day running of PBC’s offices in Moulton Park, Coventry and another that is to be announced.

Nick said: “Having gained experience in all kinds of roles in banking, I was more than interested when I was approached to take over the management of the PBC offices. I don’t have specialist skills in insolvency and won’t be acting as an advisor, but I do have an understanding of the financial sector that will ensure the business is focused on its goals and runs efficiently.”

Gary Pettit added: “PBC is growing and changing and Nick’s role is something that had been spread out between two or three different people and we felt it was time to consolidate. I’ve known Nick for some years and know what he will bring to the firm. He has in-depth knowledge of banking and the commercial world and so I was delighted when he agreed to becoming part of the team – his appointment can only help push us forward.”

 

 

JAMIE Cochrane, who has been with PBC Business Recovery and Insolvency for eight years, achieved his Association of Chartered Certified Accountants (ACCA) qualification last year.

Having started as a general administrator, Jamie has gradually built on his experience and skills, preparing for exams while carrying out his day-to-day workload within the office.

Now a fully qualified accountant, Jamie plans to take a short break from study before he embarks on studying that will lead to his insolvency qualification.

Following his securing of ACCA qualification, Jamie has been promoted to Associate of PBC.

He said: “It has been hard work, managing studying alongside my normal workload but the team here have been very supportive and flexible and helped me all the way. I’m obviously delighted to have achieved that qualification.

“There’s an ethos here of giving people the chance to develop and most of the team started in unqualified junior roles and have worked their way up.”

Gary Pettit said: “The PBC approach is to invest in people and give them the chance to gain qualifications and move up within the company. Jamie has done incredibly well and I am very proud of him.

“He has been made an Associate in recognition of the work he has put in. He is very much on the front line of the business, out there meeting people and networking and so this was a very natural step to take.”

Companies mentioned in this article

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