Things are looking up
According to the latest ICAEW BCM (Business Confidence Monitor), things are looking up for British business despite the ongoing chaos of Brexit negotiations.
This latest report asserts that business confidence has ‘moved back into positive territory’ and presents the following findings in support of this claim.
- Sales Growth And Wage Restraint Has Improved Profit Growth.
- Increase In Capital Investment, R&D And Staff Development Combined With Improved Confidence Has Contributed To Slightly Higher Profit Growth.
However, the report also finds;
- A Variety Of New Regulations And Legislation Has Presented A Widely Reported New Challenge For Businesses.
- The Effect Of Brexit On Migrant Workers Has Particularly Affected The Construction And Business Services Sectors Leading To High Staff Turnover.
Optimism And Caution Over New Figures
Another report that corroborates the ICAEW BCM is Grant Thornton’s international business report. According to research carried out for this report, UK business optimism jumped 19% to a net of 31%, the ‘highest level since the Brexit vote took place.’
The report also finds that in the UK, 58% of companies expect to see their revenues increase, while the number of businesses expecting to hire more employees over the coming year rose 9% to 38%.
This is perhaps, cautious optimism as Grant Thornton partner, Robert Hannah notes that the optimism from these GDP figures is ‘yet to translate into material economic output.’ He further advises UK businesses to focus more on adopting an international perspective on offerings and develop export strategies that can capitalise on growth opportunities outside the UK.
In a Telegraph article written by Julia Bradshaw on the 7th of May 2018, British businesses are called upon to ‘up their game’ to avoid losing out after Brexit becomes a reality. Although UK productivity has grown by0.9pc and 0.7pc in Q3 & Q4 in 2017, UK output per hour is still somewhat short of EU competitors like Germany and France.
How To Remain Profitable In A Post Brexit World
As a business owner, you may be losing sleep over the proposition of Brexit and what you really need is help and support to safely and successfully steer your business through the uncertain waters of life outside the EU.
At Numerion, we have a wealth of experience in British and international markets. We can help you with issues such as;
- Skilled Employee Access
- Workforce Appropriation and Maintenance Costs
- Exports Competitivity
- Help With Post Brexit Regulation Framework
Call us for a consultation, we take a tailored and personable approach with all clients. We will spend time to get to know you, learn your pain points and devise the best Brexit strategy for your business.
How Can SMEs Cope With And Adapt To Brexit?
If we are set to leave the EU (and most forecasters believe it is a certainty despite calls for a second referendum), a certain level of disruption is to be expected. Your services could be devalued by less favourable trade deals with the EU post Brexit.
A ‘run on the pound’ due to leaving the EU could harm your profits even if you do manage to retain clients. During this current grace period before September 2019, you have time to audit and assess your assets and the wealth in terms of your product value.
The following business assets need to be measured to get a better understanding of your standing as a SME in the Brexit fallout. You will need to examine your client base, where they are from and how leaving the EU may affect them as customers.
Next you will need to examine your stock, accounts and properties then your cash and investments. A complete audit of assets can identify any future problems while also identifying potential opportunities.
There is a lot to consider and it can be daunting but don’t worry! Our specialists can assist you every step of the way. We can help you with a risk assessment to evaluate ways to retain cash strapped customers, restructure pricing packages and how you can cope with cash fluctuation as we go through what could be a turbulent period in the UK economy.
During this critical time, we can help you look at ways to reduce cost by eliminating non essentials and most importantly how to ensure your revenue is not eaten up by overpaid tax in a time when revenue may be lower than normal.
We can help you streamline your business while still getting the most out of your workforce. We can advise on the best financial plan to pursue for your business, where to invest and where to divest in order to give you and your business a solid post Brexit safety net.
The Final Verdict On Brexit Is Uncertain So Caution And Planning Is Essential To Survival For UK Business
- The verdict is still out on Britain leaving the EU.
- Will it be a good thing as it’s advocates insist?
- Can it be the birth of a new revolution in the UK economy?
- A ‘boom’ period of British businesses leading the charge on the global front and the home front?
- We can’t be certain and given that uncertainty, caution and planning are the best options on the table for UK based SMEs.
Now is the time to put plans in action, run assessments and prepare ahead to ensure your business stays in the best shape possible as we draw closer to exiting Europe.
If you are looking for honest and impartial advice, we will always be 100% honest even if that means being honest about potential pitfalls to your business in the post Brexit economy. As well as being honest about potential problems, we will look for the very best financial solutions to them.
Brexit may well prove to be a difficult time but it doesn’t have to be a disaster. People will always need services and the best service providers should be able to weather the storm with a bit of planning and preparation.Call us today to ensure you are prepared for the road ahead, whichever route it takes.