Bad winter hits SMEs hard

Published on

Small and medium-sized enterprises (SMEs) are facing losses of more than £7 billion from the worst Winter in decades, according to new research by Lloyds TSB Commercial.

70% of SMEs have been affected by the freezing conditions that have wreaked havoc across many parts of Britain. 39% have been directly affected with their premises being closed or cut off. 42% have suffered indirectly with disrupted supply channels or obstructed delivery routes.

23% of SMEs have been lucky enough to emerge unaffected. Only 7% have been fortunate enough to take advantage of the conditions and have actually prospered during the Winter months.

Businesses in Wales suffered the most direct impact (59%) alongside firms in the North West (48%). Companies in the Midlands appear to have fared better than anywhere else with a third (33%) in the East Midlands experiencing a direct impact and around the same number (30%) directly impacted in the West Midlands.

37% of SMEs were forced to close down for at least a day, while 14% had to halt business for at least five days.

The disruption caused by the harsh winter conditions has had a direct financial impact on the bottom line for 56% of SMEs. 36% claim to have taken a hit of up to £10,000. One in eight (13%) estimates the cost to have been somewhere between £10,000 and £30,000. And, 7% believes the cost could be more than £30,000.

Only 4% believe that the cost to their business could be more than £50,000.

The additional cost of Winter comes at a time when 36% of SMEs have reported negative growth in the last financial year.

Stephen Pegge, head of external affairs for Lloyds TSB Commercial said: “Business have faced a double blow over the past few months. They have had to grapple with the downturn in trade as a result of the recession

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Paradigm bolsters leadership team

Paradigm Mortgage Services has made a series of senior appointments including a new head...

Fleet strengthens intermediary sales structure

Fleet Mortgages has promoted two senior business development managers into newly created regional leadership...

Equity Release Council hires Tracy Gorbutt-Powell for risk and policy role

The Equity Release Council has appointed Tracy Gorbutt-Powell as head of risk, policy and...

Together appoints Legal and General Surveying Services as valuation partner

Specialist lender Together has appointed Legal and General Surveying Services as a key valuation...

1.3 million households facing mortgage cost shock

Around 1.3 million additional UK households are now exposed to higher mortgage costs following...

Latest publication

Other news

Paradigm bolsters leadership team

Paradigm Mortgage Services has made a series of senior appointments including a new head...

Fleet strengthens intermediary sales structure

Fleet Mortgages has promoted two senior business development managers into newly created regional leadership...

Rental barometer shows strength, but March changes the tone

Looking at our recently published Q1 2026 Rental Barometer data in isolation, there is...