Research from Baker Tilly and Company Watch has found that many small and medium enterprises (SMEs) in the UK are having a difficult time keeping afloat in the current economic turmoil.
The companies collaborated to produce the SME Distress Monitor report, finding that companies have suffered from dropping profits and many are struggling to meet their overheads.
“According to our research into businesses with sales of between £5 million and £25 million,
making sure they have much needed working capital is challenging for many,” Baker Tilly said. “Worryingly, almost a quarter of these SMEs across the UK saw a drop of over 50 percent in their profit before tax levels, according to their full 2010 filed accounts.
The report also found over a quarter of businesses had experienced a 10 percent drop in
sales figures, likely due to inflation and consumer caution.
While the situation is grim for smaller businesses, this may come as a boon to the imaging aftermarket industry. Printing supplies are often highlighted as a costly overhead, and one that can be strongly reduced by the discount remanufactured and refilled cartridges offer over OEM consumables.
Crucially, SME Distress Monitor also found that there the number of companies entering insolvency did not follow the trend, meaning that while many businesses are having a hard
time, they are still in operation and actively seeking ways to reduce costs and stabilize their cash flow.