SMEs reeling from winter freeze
Mar 16 2010
“Small businesses are still feeling the effects of winter”
As the winter temperatures thaw, estimates suggest the freezing weather conditions have cost small businesses a chilling £7 billion in revenue.
Some 70 per cent of SMEs have been affected by the snow and ice, with 56 per cent saying it has damaged their profits, according to a survey from Lloyds TSB Commercial. More than a third claim to have taken a hit of up to £10,000, one in eight somewhere between £10,000 to £30,000 and one in twelve believe the cost could be more than £30,000.
Stephen Pegge, head of external affairs for Lloyds TSB Commercial, says: ‘Businesses 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, as well as the impact of the severe weather conditions. The combined impact of both will inevitably have caused cash flow problems for many businesses.’
Businesses in Wales suffered the most direct impact (59 per cent) alongside firms in the North West (48 per cent).
Of the 1,003 owner-managers surveyed, 36 per cent reported negative growth in the last financial year.