Turnover halved at more than 50% of East Midlands firms

A survey by the Association of Practicing Accountants (APA), with the support of East Midlands-based Duncan & Toplis, has shown that more than half of firms in the region have seen turnover reduce by more than 50% since the beginning of the lockdown.

Meanwhile, 44% have seen turnover reduce by more than 70%.

The survey of 1,018 businesses across the UK, including more than a hundred in the East Midlands has shed light on the critical challenges businesses face over the next three months.

The survey suggests:

– More than half (56%) of businesses in the East Midlands have seen their turnover reduced by 50% or more since the lockdown and with 44% having seen turnover reduce by at least 70%. This is slightly worse than the national average where 44% of UK businesses have seen turnover reduce by 50% or more, and just 33% having seen turnover reduce by at least 70%.

– 61% of businesses in the region have furloughed workers using the government’s Coronavirus Job Retention Scheme, which is similar to the national average. However, more businesses using the scheme in the East Midlands (70%) say it is “absolutely critical” for their ability to maintain staff, compared to the national average (63%).

– Nationally and in the East Midlands, fewer than 40% of businesses have enough cash in the bank to survive for longer than three months. 29% of businesses in the region do not have enough cash in the bank to survive longer than six weeks, compared to 26% nationally.

– A higher proportion of businesses in the East Midlands (27%) have applied for funding under the Coronavirus Business Interruption Loan scheme than the national average (16%). Of those who applied, 44% said the scheme worked well, compared to the national average of 16%

The Association of Practising Accountants (APA) is a network of leading professional and business service firms providing support to over 14,000 businesses across the UK.