In Outstanding Finance Podcast No.6, Ian Wright, Managing Director at WRI Associates looks at the various reasons behind the sharp rise in the number of business failures from 2013 to 2014.
The number of business insolvencies rose by eight percent from 2013 to 2014, according to figures from KPMG’s annual report. A recent article in The Herald cited closure of shell companies as part of housekeeping exercises as a possible reason for the rise. However, Ian explores additional reasons that may explain the increase.
As the podcast runs, Ian goes on to explore the effect of changes at HMRC brought about by real time PAYE reporting.
The Herald article states; “business that survived the recession are now trading in a better place”, Ian expresses his own views on this based on his experience of the companies he is currently working with.
As part of this discussion, Ian talks about some of the common issues he comes across that eventually lead to business failure, these include poor financial reporting, and a lack of proper funding.
Although this begins as an analysis of why the number of insolvencies grew last year, later in the podcast Ian discusses why he found a recent statement by Wetherspoons Chairman, Tim Martin so refreshing. The pub chain founder used his address to the London Stock Exchange to highlight the struggles for the leisure market. This leads to a discussion about the effect of the new drink-driving laws in Scotland and how it is likely to impact on the leisure trade.
You can listen to Outstanding Finance Podcast No. 6 here:
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To learn more about WRI Associates and how Ian and his team can help you, even if you’re just looking for advice, please get in touch. You can contact us through our website, via email, or by calling us on: 0141 285 0910.
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