It was revealed last month that 35% of UK businesses are forecasting a profit drop in 2019.
These findings were uncovered by the Chartered Institute of Management Accountants (CIMA), who recently conducted the survey with 1,496 of the nation’s finance professionals.
The answers from the respondents, which included both Finance Directors and CFOs, lay bare how unprepared companies are for the effects of Brexit, with the subject being a key reason for CIMA undertaking the research in the first place.
The 35% that predicted a decline in profits next year did so as a result of the UK’s exit from the European Union. Furthermore, 27% are expecting flat profits and only 5% are estimating a profit rise, whereas 58% are bracing themselves for an increase in business costs. This all comes despite 77% of organisations saying that they have taken steps to prepare for Brexit, with just 20% of these then admitting to having carried out a full risk assessment for each potential impact.
Commenting on the above, Andrew Harding, Chief Executive of CIMA, points out that although finance professionals are typically well prepared thanks to the abundance of data at their disposal, they are now struggling due to the high level of uncertainty.
It must also be noted that as the long-term influence of Brexit will not be known until the negotiations take place, the future outlook may well be more positive than it is at the moment.
Working with companies throughout Leeds, Yorkshire, the North East and the rest of the UK, the insolvency practitioners at Walsh Taylor help out clients to formulate workable solutions for their monetary problems.
If you are therefore struggling financially and would like more information on how we can be of assistance, please feel free to give us a call today on 03300 244 660.