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

Afin Bank appoints Beth Jeffs to lead product strategy

Afin Bank has appointed Beth Jeffs as head of product and proposition, with responsibility...

OMS appoints Simon Tippett as head of delivery

One Mortgage System (OMS) has appointed Simon Tippett as head of delivery as the...

Together reports record lending as loan book reaches £8.4bn

Together Financial Services Limited has reported a further quarter of growth, with lending volumes...

Canal trek triumph as Berry and Morely win gold

Jason Berry and Charlie Morely finished their epic 141-mile trek up the Grand Union...

East Ayrshire named most affordable area for first-time buyers

East Ayrshire has been named the most affordable location in the UK for first-time...

Latest publication

Other news

Afin Bank appoints Beth Jeffs to lead product strategy

Afin Bank has appointed Beth Jeffs as head of product and proposition, with responsibility...

OMS appoints Simon Tippett as head of delivery

One Mortgage System (OMS) has appointed Simon Tippett as head of delivery as the...

Together reports record lending as loan book reaches £8.4bn

Together Financial Services Limited has reported a further quarter of growth, with lending volumes...