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

Jonny Palmer: Taking on the world’s toughest foot race

On 3 April I’ll be attempting what is considered the toughest foot race on...

Altura rolls out AI social media compliance checker for advisers

Altura Mortgage Finance has launched an AI-powered social media compliance tool aimed at helping...

Bank of Ireland extends terms and income multiples

Bank of Ireland for Intermediaries has announced a series of enhancements to its residential...

Beverley Building Society launches RIO Lifetime Discount Mortgage

Beverley Building Society has expanded its later life proposition with the launch of a...

Saffron broadens FTB access and adds 5yr fix for lending into retirement

Saffron for Intermediaries has expanded first-time buyer eligibility across its owner occupied range and...

Latest publication

Other news

Jonny Palmer: Taking on the world’s toughest foot race

On 3 April I’ll be attempting what is considered the toughest foot race on...

Altura rolls out AI social media compliance checker for advisers

Altura Mortgage Finance has launched an AI-powered social media compliance tool aimed at helping...

Bank of Ireland extends terms and income multiples

Bank of Ireland for Intermediaries has announced a series of enhancements to its residential...