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

The Mortgage Works backs landlord EPC compliance pilot with Eco Approach

The Mortgage Works has partnered with retrofit specialist Eco Approach to provide free energy...

TML expands buy-to-let range with limited-edition products and rate reductions

The Mortgage Lender has launched a new range of limited-edition buy-to-let products and reduced...

Molo cuts buy-to-let and semi-commercial rates by up to 30bps

Molo has reduced rates across its UK resident buy-to-let and semi-commercial mortgage ranges, with...

Bank holds rates at 3.75%

The Bank of England left interest rates unchanged at 3.75% today despite inflation remaining...

Nivo takes AI broker roundtable series to Manchester

Nivo is bringing the latest event in its broker roundtable series to Manchester next...

Latest publication

Other news

The Mortgage Works backs landlord EPC compliance pilot with Eco Approach

The Mortgage Works has partnered with retrofit specialist Eco Approach to provide free energy...

TML expands buy-to-let range with limited-edition products and rate reductions

The Mortgage Lender has launched a new range of limited-edition buy-to-let products and reduced...

Molo cuts buy-to-let and semi-commercial rates by up to 30bps

Molo has reduced rates across its UK resident buy-to-let and semi-commercial mortgage ranges, with...