Back from a trip to see a multiple office estate agency in east Midlands today. In a market where they sell lots of small family houses with an average price of £110,000, sales transactions have fallen by 65% in 3 months. Up to the last financial year end the company bagged a profit of £300,000 a year. Now sales have fallen to around only £500,000 (annualised) !
The owner has been in the business for 23 years, he has never seen anything like this. A company voluntary arrangement will allow him to cut 12 employees and close loss making offices. He is prepared to work for no salary for 12 months or more. I admire this determination and guts, SO we will help rescue this business.
After that we met with a vending machine distributor in Yorkshire. Touch and go whether its viable but the board want to give a rescue a go and will raise some of the own capital to support their CVA. Again SME business people determined to tough out the savage downturn we are witnessing every day now.
If you know a company with serious cashflow problems and or a savage sales fall get them to read this page, for good advice.
So an interesting day in our world, hope it was for you too.