Member Article

Zombie Businesses from the South West get help

The Chartered Institute of Management Accountants (CIMA) held a free event at 7pm on 3rd November at the Bristol Hilton in Bristol to help local business improve their recovery in the current economic climate. According to the latest UK Business: Activity, Size and Location report released this month from the National Office of Statistics, there has been a small decline in the number of enterprises in Bristol in the last year.

According to the key speaker at the CIMA event, Simon Rowe, Partner at MILSTED LANGDON LLP Chartered Accountants in Bristol, many of the local businesses could be what he calls ‘Zombie’ companies who don’t realise they are fading away and are only just surviving on a month to month basis, even when their bank debt is on interest-only at historically low interest rates.

With ‘customer demand’ being the biggest worry for businesses in the South West (according to the latest quarterly UK Business and Economic Outlook Survey by CIMA) this event, ‘Achieving effective business recovery in the current economic climate’, covered how pro-active businesses can stay open and grow in the future by looking at what they can do to change and adapt their businesses before it is too late.

Simon, who is responsible for both the insolvency and consultancy teams in the office and spends a significant proportion of his time helping businesses improve their trading performance and profitability, says, ‘This really is a breathing space for many businesses that have managed to continue trading. But low interest rates won’t be around forever. Now is the time to be looking at how they can increase their market share, diversify into new markets or modernise. This can seem hard for businesses, particularly when they feel strapped for cash, but there is a need for them to take action now if they are going to still be around in another year’s time.’

Adrian Rutter, CIMA’s Regional Chairman for South Wales and the South West of England, says, ‘In Bristol and right across South Wales and the South West, CIMA-qualified Chartered Management Accountants are guiding companies of all sizes through some of the toughest times we’ve seen in decades. This event is one amongst a series held across the region, and will give Bristol businesses a real advantage in not just surviving but succeeding and actually thriving.’

CIMA run a series of events for students, members and guests in Bristol and throughout the South West of England and South Wales on a regular basis across the year. For further information visit www.cimaglobal.com/localevents

This was posted in Bdaily's Members' News section by CIMA UK Regional News .