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May 14, 2020

Success is saying goodbye to a thriving business!

Just over a year on from securing a six-figure funding solution, an Essex-based air conditioning and refrigeration contractor has happily parted ways with its funder.

As a result of successfully obtaining new contracts, delivering an investment programme focused on improving technology and recruiting additional employees to cope with demand, the firm has found itself in a good cash position. Thanks to the funding facility, the firm was able to make key investments and now have no current need for additional cashflow support.

J.C. Watson Mechanical design and install air conditioning and refrigeration solutions. With over 40 years’ experience in both the public and private sector, the business provides services to local authorities, the NHS, as well as businesses. The director had ambitious plans to invest back into the business, with the challenge being how to fund them.

With insignificant cash flow to achieve growth they required a funding facility which could provide the flexibility they required to implement the different stages of their plans. Having been introduced to specialist invoice finance provider, Gener8 Finance, they successfully secured a £200,000 cashflow funding facility in February 2019. This soon increased to a £350,000 facility to reflect the success of the business. Gener8 tailored a funding package designed to boost the firms’ cash position and support growth by utilising working capital otherwise tied up in unpaid invoices from their customers.

John Lyman, director at J.C. Watson Mechanical, said: “Our funding facility with Gener8 has been fundamental in supporting the ongoing cash flow requirements to make vital investments in key areas of our business. Their support and flexibility have now placed us in a strong position for the future. We no longer require cashflow funding but wouldn’t hesitate to recontact Gener8 should the business require additional cash in the future. We really can’t recommend their services enough.”

Tansy Cunningham, head of business at Gener8 Finance, added: “It’s been a pleasure to support John and the team at J.C. Watson Mechanical as we have watched their business grow and succeed. Their story is a fantastic example of how our funding solutions can support businesses through challenging periods of investment and come out of the other side stronger. Working closely together over the past year we have been able to identify opportunities for further support, whilst now recognising the time has come whereby the firm is in a good enough position to continue without additional funding. We wish all at J.C. Watson Mechanical the best of luck for the future and are thankful for a great business relationship with another successful client.”

May 5, 2020

SME manufactures see activity plunge sharply

SME manufacturing output fell at the quickest pace in over a decade in the quarter to April, according to the latest CBI SME Trends Survey. This sharp fall is largely attributable to the COVID-19 crisis, with over four out of five firms noting that the measures to contain the outbreak had a negative impact on their domestic output.

The survey of 301 SME manufacturers reported that total new orders in the three months to April fell at the fastest rate in seven years. Domestic orders fell at broadly the same pace as the previous quarter, while export orders dropped at their quickest rate since October 2015.

Chiming with weak activity this quarter, business sentiment in the quarter to April dropped by its fastest on record. Export sentiment also fell at a survey-record pace.

Looking ahead, manufacturers expect output to plunge at a faster pace next quarter, marking the weakest expectations on record (since 1988). Both new domestic and export orders are anticipated to contract at a much faster pace next quarter, also constituting the weakest expectations on record.

Investment expectations for the next year for buildings and plant & machinery deteriorated to survey-record lows, as a record high proportion of firms reported uncertainty about demand as a factor to limit future investment.

Headcount in the quarter to April fell at its quickest pace since October 2009. Firms expect employment to fall at a much faster pace next quarter, marking the weakest expectations on record.

Additional questions added to the survey in relation to COVID-19 revealed that:

  • Over four out of five of firms have seen a negative impact on their domestic output.
  • Around two-thirds of firms have seen a negative impact on international output.
  • Just over half of firms have partially shutdown/closed UK production/activity.
  • A little over half of firms mentioned that they temporarily laid off staff, compared with 9% reporting permanent layoff.
  • Three-quarters of firms faced cash flow difficulties.

Alpesh Paleja, CBI lead economist, said:

“SME manufacturers are seeing a sharp shock to activity due to the COVID-19 outbreak, with expectations signalling a sharper downturn to come. Nonetheless, manufacturers are doing all they can to support communities and employees during this difficult time.

“The government’s support schemes have been a real lifeline for businesses so far, and they should remain conscious of getting money to those who need it quickly. This will be a critical step to restarting the economy once it is safe to do so, which will require a strong partnership between government and business.”

Key finding

  • Output volumes in the quarter to April fell at the quickest pace since October 2009 (-14% from -7% in January). Manufacturers expect output to contract at a considerably faster pace next quarter (-73%), marking the weakest expectations on record (since 1988).
  • Total new orders in the three months to April fell at the fastest rate since April 2013 (-13% from -7% in January). Domestic orders fell at a broadly similar pace to January (-9% from -7%), while export orders dropped at the quickest pace since October 2015 (-23% from -1%).
  • Looking ahead, total new orders are anticipated to contract at a much faster pace (-76%), reflected in quicker drops in domestic (-74%) and export orders (-71%). These constitute the weakest expectations on record (since 1988).
  • Headcount in the quarter to April fell at their quickest pace since October 2009 (-14% from -8% in January). Firms expect employment to fall at a much faster pace next quarter (-56%), marking the weakest expectations on record.
  • Business sentiment in the quarter to April dropped by its fastest on record (-81% from +32% in January). Export sentiment also fell at a survey-record pace (-80% from +7%).
  • Investment intentions for the next year worsened across tangible and intangible investment categories. Expectations for buildings (-63%) and plant & machinery (-64%) deteriorated to survey-record low.
  • The share of firms citing uncertainty about demand as a factor to limit capital expenditure rose to a survey-record high (72%).
  • The share of firms working below capacity rose to its highest on record (76%).
  • The share of firms citing credit or finance as a factor to limit output rose to its highest on record (18%).
  • The proportion of firms citing political/economic conditions abroad as a factor to limit export orders also rose to a survey-record high (72%). Meanwhile, the share citing prices as a factor to limit export orders dropped to a survey-record low (16%).

Additional questions added to the survey in relation to COVID-19 revealed that:

  • 83% of firms have seen a negative impact on their domestic outp
  • 65% of firms have seen a negative impact on international ou
  • 53% of firms have partially shutdown or closed UK production/activi
  • 52% of firms mentioned that they temporarily laid off staff, compared with 9% reporting permanent layoff
  • 75% of firms have faced cashflow difficulties.
May 5, 2020

Nucleus Commercial Finance delivers £1.3m facility to Leyton Group

Nucleus Commercial Finance has provided a £1.3m facility to steelwork specialist firm Leyton Group, enabling the business to take on larger projects and expand across the UK.

Founded in 2011, Leyton Group is a leading specialist in steel staircase design, manufacture and installation, currently operating mainly across London and the south. The business has completed significant key projects; including the PwC HQ at One Embankment Place, Deloitte’s HQ at New Street Square and the Canadian Embassy in Trafalgar Square.

The £1.3m combined construction finance and property loan facility from Nucleus Commercial Finance is a refinanced loan and overdraft facility offering greater flexibility than their previous provider NatWest. It will generate additional working capital which increases in line with business growth, allowing Leyton Group to take on larger projects.

Fraser McFarlane, managing director, Leyton Group said: “Working with Nucleus Commercial Finance means we can grow our business and realise the opportunity of expanding into cities such as Liverpool and Manchester. The team at Nucleus took the time to understand our business, the people within it, and our needs to truly tailor a bespoke facility. While this is a challenging time for businesses, our order book is in a strong position with a steady pipeline of activity and we still have ambitious plans for 2020.”

Dennis Pym, sales director, Nucleus Commercial Finance, said: “We are pleased to support Leyton Group in delivering on its growth ambitions. This multi-layered finance facility combines our knowledge of the manufacturing industry and our ability to use more than one product, giving the leadership team at Leyton Group finance that closely matches their needs.

“SMEs across the UK are facing unprecedented times and it’s crucial for them to have access to finance to support their plans. This deal is a great example of how the needs of every business are considered individually by us and shows the role alternative lenders can play in supporting UK SMEs in the current climate.”

May 4, 2020

L and G Modular Homes achieves planning consent as factory reopens

Legal & General Modular Homes announces that it has gained planning consent to deliver 154 homes, using modular construction, at an eight acre site on Portholme Road, Selby in North Yorkshire.

From its factory in Sherburn-in-Elmet in Yorkshire, Legal & General Modular Homes has ambitions to build its annual housing delivery to 3,000 modular homes a year in 2024, bringing rapid and disruptive change to the construction industry. It is designing and manufacturing homes in an innovative way in order to transform the way homes are built in the UK. The delivery pipeline continues to grow, with 350 homes added to the pipeline so far this year.

Selby is the first scheme, where Legal & General Modular Homes will deliver a full development proposition from buying land, developing the product, achieving planning consent through to delivery. With a standardised approach to manufacturing, quality, efficiency, and productivity is driven up, and costs are driven down. Modular construction offers an impactful solution to the UK housing crisis, supporting UK jobs and helping to meet government’s objective to build more Affordable carbon-friendly housing. The Selby development will provide up to 130 jobs across the supply chain, and will see Legal & General Modular Homes recruit a further 50 employees to support the scheme.

Amid the Covid-19 lockdown, construction sites across the UK have closed, putting housing targets in jeopardy and exacerbating the shortage of homes in the UK. Legal & General and its housing businesses have continued to pay 100% of employees’ wages during lockdown and have not applied for any financial support from the government. With its controlled factory environment and having re-aligned production with additional measures to accommodate strict social distancing, last week operatives were able to return safely to the 550,000 sq ft modular manufacturing facility to continue this ground-breaking work. Design and digital engineering specialists there have been able to work remotely throughout the lockdown period and 75 employees have now returned to the factory as part of the gradual phasing back of its 250 staff.

The Modular manufacturing sector offers multi-skilled employment opportunities and homes that can be delivered in a matter of weeks. Legal & General’s factory in Yorkshire brings a variety of highly skilled jobs to the area, including across design, finance, engineering, procurement, construction and production. The north of England has the potential to pull the construction industry into the 21st century, and become a world-leader in the creation of modern, high-quality homes. Once the industry matures it could be worth an estimated £40bn to this country.

The Portholme Road scheme in Selby includes up to 30% affordable housing and will showcase how innovation in the industry can bring a step change to UK residential development, whilst delivering a sought after place to live for a wide range of buyers. It will be developed on the site of the former Selby civic centre, bringing back into good use a site which has remained vacant for seven years. The masterplan at the site in Selby incorporates a mix of contemporary terraced houses and low-rise apartments, with great access to public transport and direct connections to Leeds and York.

Legal & General Modular Homes will deliver 76 one and two bedroom apartments, alongside 78 two and three bedroom houses, catering for buyers across the housing ladder. All homes have been designed to achieve EPC Standard A, currently only achieved by circa 1% of new homes.

Rosie Toogood, CEO of Legal & General Modular Homes said; “Using modular construction, Legal & General will be able to deliver high quality homes at a much faster rate than through traditional construction. In a post Covid-19 crisis environment, the speed of delivery will be more important than ever before.

“Our journey to revolutionise the UK’s construction industry is well underway, and planning consent at Portholme Road, Selby is testament to this. This scheme, along with our proposals at Bonnington Walk in Bristol, will showcase the benefits of modular construction. Achieving planning permission for this Selby scheme is a fantastic milestone for the business, and a major achievement for the team, particularly set against the current backdrop.”

Alongside developing its product capabilities, Legal & General has focused on recruitment and up skilling its workforce through the launch of its Modular Academy in collaboration with Selby College. This has developed in-house resources to deliver a full modular development capability from buying land to construction, all the way through to delivery.

Across its housing businesses and future cities business, Legal & General continues to invest and progress planning for future developments, providing much needed economic stimulus. Including Selby, during the last three weeks of lockdown Legal & General has achieved planning approvals for around 650 new homes across five schemes. Preparing Legal & General’s housing businesses for post-covid resumption of activity across all types of tenure, consents include planning permission for a 270-home later living community at its former surrey Campus office which will create around 175 construction jobs per annum and up to 80 new permanent jobs once complete.

May 1, 2020

Midlands manufacturer boosted by CBILS funding

A Worcestershire-based specialist kitchen worktop manufacturer has been able to protect jobs and bolster its cashflow position during lockdown with the support of Lloyds Bank.

Interfab, which operates a 13,000 sq ft manufacturing facility in Evesham, specialises in creating high-end acrylic worktops for both domestic and commercial kitchens. With installations and new contracts being paused as a result of national measures taken to tackle COVID-19, the firm was facing the prospect of operating with reduced working capital.

Having taken the decision to furlough its employees during the period, Interfab turned to long-standing banking partner Lloyds Bank to secure a five-figure funding package via the Coronavirus Business Interruption Loan Scheme.

The funding will support the business’ cashflow during the remaining period of lockdown while ensuring it is able to start trading again swiftly, protecting jobs in the process.

Clive Hatt, managing director at Interfab, said: “Having acquired the business with Lloyds Bank’s support three years ago, we’ve put ourselves into a strong position by successfully integrating commercial work into our offering. Coronavirus has unfortunately put activity on hold for the time being but we’re confident of finding our stride again quickly once our manufacturing and fitting teams are able to return to work.

“This funding will ensure we’re able to manage our overheads and support our creditors’ businesses as well. Having swift access to funding has allowed us to respond quickly to the challenges of the current crisis and Lloyds Bank has been extremely helpful in that respect.”

Martin Crossley, relationship manager at Lloyds Bank, said: “Manufacturing is a critical sector for the Midlands so it’s a privilege to be able by the side of businesses like Interfab during this difficult period. We’ve supported Clive and his team right up to this point and look forward to the next steps of their journey in a more positive climate.”

April 30, 2020

Gener8 provide £400k funding to firm manufacturing PPE for frontline NHS staff


Gener8 Finance, the invoice finance provider to small businesses across the UK, have supported a fashion and textile manufacturer with a £400,000 cashflow finance facility as they use the funds to manufacture essential personal protective equipment (PPE) for the NHS.

In a bid to support frontline staff as they battle against the covid-19 health crisis whilst they face a PPE shortage, the team at LS Manufacturing UK Ltd have temporarily switched their operations to focus on helping Britain’s healthcare sector. In a warehouse that normally designs and produces luxury clothing for high-street retailers, the firm has switched its operations to solely manufacturing textiles for the NHS; from non-surgical gowns and protective headwear for frontline staff, to cubicle curtains for local NHS trusts.

The well-established West Midlands-based manufacturer has already built a strong reputation for quality, innovation and first-class customer service in the textile and garment manufacturing market, extending their services globally. With operations spanning over 60 years the creative team have developed expertise in producing a wide range of products, from outerwear, to soft furnishings to body armour.

Daljit Mehat, director at LS Manufacturing, commented: “In the face of this global pandemic, we’re proud to have a dedicated team on board who can produce urgently required protective equipment and help safeguard medical professionals. We want to do everything we can to support this national effort and make a real difference.

Our funding facility with Gener8 has been fundamental in supporting the ongoing cash flow requirements to produce these garments. As we continue to stay open for business and work through these challenging times, their support and flexibility has ensured we can deliver this project.”

Tansy Cunningham, head of business at Gener8 Finance, added: “It’s a pleasure to support LS Manufacturing as they use their skills and expertise to support our national healthcare service through these extremely challenging times.

The work they are completing is a fantastic example of how British businesses can pivot in the face of adversity and come together.

We look forward to building a long business relationship with the team and continuing to support them past the covid-19 crisis.”

Gener8 Finance, who are part of the 1pm Group of Companies, remain open for business and available to support credit worthy British businesses through the coronavirus pandemic with cash flow funding facilities ranging from £50,000 to £1m. Collectively the Group provide access to a multi-product range of business finance solutions from invoice finance, asset finance, commercial loans through to vehicle finance.

April 28, 2020

Business confidence falls to near record low

Lloyds Bank Commercial Banking Business Barometer.

The steep decline illustrates the impact the measures to contain the pandemic is having on UK businesses. (See chart 1).

The results, which surveyed businesses between 31 March – 16 April 2020, reflect a significant drop in both trading prospects and economic optimism. The survey showed that current trading prospects fell to a record low of -25%, while economic optimism also dropped from 3% to -39% but remains above the levels seen in late 2008, despite sitting at a very low level.

The outlook is reflected in firms’ assessment of their own hiring intentions, which fell into negative territory for the first time since 2011 from 4% to -17%. While a fifth of businesses expect to increase employment, those anticipating a reduction in the next twelve months stood at a record 37%. In addition, businesses that are anticipating a pay freeze increased to 30% from 11% in March. (See chart 2).

Chart 1: Sentiment sours as lockdown measures are introduced to stem the health crisis

Chart 2: Net hiring intentions for the next twelve months turn negative

Source: Lloyds Bank Business Barometer April 2020), BVA BDRC

Responding specifically to the impact of the coronavirus, 74% of businesses stated a negative impact with 10% of firms say they are benefiting from it. In terms of the ability to supply their product or service, 22% of manufacturers expect their supply chain to return to levels seen prior to the outbreak within three months. The retail sector reported 28%, while within the construction sector 45% expect to see levels return within three months. (See chart 3).

Chart 3: Confidence falls in all twelve regions

Source: Lloyds Bank Business Barometer April 2020), BVA BDRC

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “The results in April demonstrate the full impact of the measures taken by the Government to shut down large parts of the economy to help contain the pandemic, with sentiment now matching the all-time low of December 2008. There are tentative signs that China’s economy is stabilising as it starts to ease lockdown measures, and that may serve as a template for the rest of the world.”

CONFIDENCE ACROSS THE REGIONS AND SECTORS

From a regional perspective, all 12 regions reported lower overall confidence in March. Yorkshire and Humber were the least negative region at -19%. Wales was the most negative region at -52% followed by Scotland at -50% (See chart 4).

Source: Lloyds Bank Business Barometer April 2020), BVA BDRC

In April, overall business confidence fell across all four sectors. Confidence in the manufacturing sector saw the sharpest decline, falling 46 percentage points to -35%, with the retail sector falling to -33%. The construction sector fell by 34 percentage points to -20%, while services fell 23 points to -22%.

Paul Gordon, managing director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “April has shown the unprecedented impact of the shutdown for businesses across the UK with trading prospects and overall confidence free-falling across the regions. During this time it is important that businesses take steps to access the government schemes such as tax deferment, rates reductions, small business grants and the job retention scheme and the various finance options available to them so that they can survive through this crisis and be best placed to open their doors again in the months ahead.”

 

April 24, 2020

UK food and drink sector bucks trend

Food and drink businesses defied an overall drop in UK exports during the first quarter of 2020 as supply chain disruption and international efforts to combat coronavirus hit overseas sales of goods and services, according to the Lloyds Bank International Trade Index.

The Index, compiled in partnership with IHS Markit saw UK manufacturing exports fall for the fourth quarter in a row between January and March, at 46.8 for new manufacturing exports in Q1, down from 47.9 in Q4 2019. The sharpest drop occurred in March, when the Index dropped from 47.8 in February to 43 in March – the fastest monthly downturn since 2012.

Food and drink was the only manufacturing sub-sector to buck this trend, with exports growing for the first time since Q2 2019 between January and March to 50.5.

The sector’s performance was underpinned by strong demand in key export markets, such as the USA and Ireland, and the easing of global trade tensions from 2019, when higher US trade tariffs on European products, such as whisky, wine and cheese and uncertainty over the UK’s departure from the EU caused UK food and drink exports to fall.

In March, UK manufacturers experienced delivery delays and reduced availability of key inputs on an unprecedented scale since 1998, with a supply chain pressure reading of 33.

Historic lows for UK services exports

Meanwhile, in Q1 2020 UK services businesses saw the sharpest quarterly drop in new overseas work since the Index began in 2014 at 42.7 down from 46.5 in Q4 2020. The fall was driven by a slump in international travel, with services exports related to transport (39.9) and hospitality and leisure (11.8) most acutely affected.

Financial services, however, outperformed the sector at large during the first quarter of this year with a reading of 51.5, with new business from overseas increasing at the fastest rate since Q3 2019. Firms surveyed attributed this growth to greater clarity over the UK’s departure from the EU, but some said international clients were still delaying spending decisions due to coronavirus.

Economic output free falls, but early signs of Chinese recovery

Further data from the Bank’s UK Export Climate Index, compiled from Flash PMI surveys for Australia, the Eurozone, Japan and the United States point to a severe downturn in business activity during April, with the fall in economic output exceeding lowest levels since the global financial crisis. These provisional figures highlight the prospect of a further reduction in UK exports during the second quarter of 2020.

In addition, the CPB World Trade Index suggests that global export volumes have decreased the fastest in 20 years, with developed markets and international supply chains suffering due to lockdown measures to stop the spread of the virus.

The International Trade Index also noted the end of a seven-year run of global economic expansion during the first quarter of 2020 at 46 in Q1 2020, down from 50.3 in Q4 2019.

The Index reading for March alone was 37.3, showing the impact of emergency measures to combat coronavirus on demand for UK exports in key markets.

However, after posting a reading of 27.5 in February, mainland China jumped to 46.7 in March – indicating early signs of renewed demand for UK exports as the country’s lockdown restrictions eased.

Gwynne Master, managing director and global head of trade for Lloyds Bank Global Transaction Banking, said: “The China shutdown sent shudders through the global economy and complex global supply chains, with an unprecedented knock-on impact for UK exporters. Performance and good growth levels in the UK food and drink sector as well as the financial services industry in Q1 are sources of encouragement.”

“It is reassuring that China, one of the first major economies to gradually return to work, is showing signs of an economic recovery. We are closely observing supply chain pressures when movement restrictions are eased across Europe and the UK. Lloyds Bank has a crucial role to play, providing support to businesses to enhance cash and working capital solutions through trade solutions. We are committed to helping Britain trade, mitigating trade risk and enhancing liquidity now and in the months ahead.”

April 16, 2020

BFS provides £3.5m trade finance facility to refrigeration specialist

Independent SME funder, Bibby Financial Services (BFS), has provided a £3.5m funding facility to Capital Cooling Refrigeration Limited, a refrigeration specialist with 20 years’ experience in the industry.

The West Lothian business based in Broxburn, designs, manufactures, distributes and maintains a range of commercial refrigeration products and bespoke systems to a variety of well-known UK retailers across the leisure, retail and hospitality sectors.

Capital’s growing product range and focus on sustainability and commitment to customer service has seen the company position itself as one of the UK’s premier, forward thinking commercial refrigeration businesses.

BFS’ Corporate team was introduced to the business by its owners since 2017, Rcapital. Corporate manager, David McIntyre, and his team moved quickly to deliver a complex multi-product solution to provide the working capital required to support the company’s internal investment and growth.

The £3.5m funding package provided by BFS incorporates trade finance, which will enable the business to extend its footprint in existing markets as well as developing products for new sectors.

Steve Steadman, CEO, Capital Cooling Refrigeration Ltd, commented:

“This new facility will play an integral part in our plans for expansion as it will free up working capital to invest in our people, products and processes. We have been impressed by how quickly BFS were able to structure a funding package that suited our needs. We’re thrilled to partner with the team and look forward to driving the business forwards.”

David McIntyre, corporate manager, Bibby Financial Services, said:

“With a customer base that includes some of the UK’s best-known brands, Capital Cooling is a well-respected specialist in the refrigeration industry. We are very happy we were able to deliver a unique solution that will provide them with the required capital to expand their offering. We are delighted to work with Steve and the team as they pursue their exciting growth ambitions.”

April 14, 2020

Financial and non-financial services need to re-boot to kickstart slowing productivity

ONS  labour productivity data from Q4 2019 revealed that productivity, as measured by output per hour, saw a small rise of 0.3% compared with the same quarter a year ago. This rise was caused by gross value added (GVA) growing at 1.1% compared with the same quarter a year ago, while hours worked grew by 0.8%. The 0.3% growth in output per hour was largely caused by a strong performance from construction, while manufacturing made the largest negative contribution to whole-economy productivity growth. Financial services made the second-largest negative contribution of the sector of-0.4% and non-financial services third with growth of -0.2%.

This trend of negative productivity growth is a common one with the financial service sector productivity levels falling 0.1% over the last decade. In light of this, chartered accountants Theta Financial Reporting unveils nationally representative research looking into productivity and appeal of professional services, including financial services. Across over 2000 UK adults, this survey looks into people’s attitudes towards the sector, their own productivity and their working environment.

Key findings

  • Over 17.5million Brits – 46% of the nation believes that working in ‘the city’ has a detrimental effect on peoples’ health and would not want their children to pursue a career there
  • 8.2 million Brits have actively avoided professional services as a career due to the demands of the industry
  • 34% of Londoners have avoided the professional services industry as well as a quarter (24%) of AB workers
  • Over a quarter of Brits – 26% or 6.7 million UK workers – don’t feel they received the required training to do their job effectively
  • This rises to 28% of AB workers
  • Four in 10 Brits (39%) feel less productive at work because of presenteeism

This research shows that professional services, including financial and non-financial services, have a productivity problem, with them being two of the largest contributors to negative growth of productivity in the economy. The research from Theta Financial Reporting demonstrates that British workers are actively avoiding these sectors due to health concerns and the demands of the industry. Coupled with millions of Brits not receiving the correct training to complete their job, this will add to the stumped growth in these sectors which has a severe impact on the entire economy.

With this problem continuing for the last decade, it is clear that something needs to change within the industry. With the current situation of millions of Brits working from home, in-office presenteeism will have diminished, and as over a third of British workers say that this is a cause of them lacking productivity, this new working environment could change the course of UK productivity, particularly in the professional services space.

Chris Biggs, managing director of Theta Financial Reporting, commented on the results of the survey:

“This data shows the fundamental problem that the industry has with productivity, and while individuals may be trying to make small tweaks to how they work to combat this, it is clear that there needs to be a more concerted effort to broach this issue once and for all.

While COVID-19 is having a huge impact on business and productivity at the moment, the UK is also going through a shift with millennials and generation z’s driving change towards a greater work-life balance, more focus on workplace mental health and shining a light on employee efficiency and productivity. This has only been exacerbated by lockdown periods during the Coronavirus crisis.

Professional services, for example, have for too long done things as they have always been done, and have been slow to move with the times, continuing to take part in archaic practices. This is leading to negative growth of productivity and a shrinking talent pool.

This research conducted by Theta Financial Reporting demonstrates that the professional services sectors need to change their practices to combat presenteeism and make the sector more appealing to a new generation of employees, otherwise they could face a major talent issue in the coming years. Once we are through the COVID-19 period of disruption, flexible working options and extended training programmes can help companies become more productive and change the course of UK productivity across the entire economy”

 

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