How are businesses now faring with the impact of COVID-19?
Business recovery survey
Roffe Swayne as members of the Association of Practising Accountants (“the APA”) (a network of 20 leading business advisory firms) took part in a recent survey looking at business recovery in the wake of COVID-19.
Results from research conducted by the APA of businesses across the UK has been highlighted below.
- 82% are confident that they have access to the finance they need to get back up and running
- 72% are confident they will be able to retain furloughed staff once Government funding ends
- Only 7% see Government support being withdrawn as their biggest challenge
- 55% have at least three months cash in the bank (this is up from 41% in the April survey)
- 23% reported turnover at lower than 50% of pre-lockdown levels (this is down from 43% in April).
However, the negatives include:
- 28% have less than 8 weeks cash in the bank
- 31% think it likely they will have to make redundancies in the next 3-6 months
- 16% have turnover of between 70% and 100% lower than before the lockdown was introduced
Owner managers are also having to adapt the way they work with 49% likely to make home working a permanent option for at least some of their staff and 56% see virtual meetings as the default option going forward.
Across professional and financial services, this rises to 76% of respondents that indicated they were likely to make home working a permanent option for at least some of their staff.
The research also indicated strong support for a continuation of the Government’s Coronavirus Business Interruption Loan Scheme (CBILS) and 63% of those who have applied felt the scheme worked well. This is a step in the right direction and up from 33% in the April survey.
There is no doubt that the impact of COVID-19 on owner managed businesses has been significant. However, those businesses who have survived are now generally more resilient.
We are not out of the woods yet, with over 30% of these businesses likely to make redundancies over the coming months and 28% having less than 12 weeks cash in the bank. As drivers of jobs and growth across the real economy, these businesses continue to need clear direction and support from Government as the economy gets back up and running.
Roffe Swayne are committed to helping businesses through this tough time, please see our recent blog regarding managing cash flow and, if we can be of assistance with any of the Government initiatives, please do get in touch.
For more information
For more information please contact us on: