In the UK, family businesses account for over 75% of all business and employ over 50% of all workers. As such, family businesses have a significant role to play in the UK’s economy. In a report undertaken by the IFB Research Foundation (Institute For Family Business), this revealed that 1 in 5 of the largest businesses in the UK are family owned. Of the 1,551 largest companies in the UK, 19.8% are family-owned and most of these are owned by UK families.

Based on these statistics, it goes to show that now more than ever, the UK should be supporting and growing this sector due to the country’s uncertain economic climate.

What Makes A Family Business?

Family businesses come in all shapes and sizes, they run in different sectors and have even been operating for generations. For those lucky ones who have stood the test of time, it can sometimes seem overwhelming for future generations to take note and follow in their footsteps. Whatever their business model, common values are at the core of most families. For a business family, these values often reflect into the workplace. Studies have shown that these foundational values are often the key to their success. If you share the same beliefs and goals, this will make business a lot easier.

Positive Attributes Of A Family Business

Likewise with many businesses, there are positive and also negative characteristics of working in such an environment. To ensure long term success, family businesses should be nurtured by those who support and advise them.

Commitment is key. When it comes to family businesses, there is a larger presence in terms of commitment and accountability . Due to this bond, tied by blood or marriage, this cements a level of commitment often near impossible to replicate in a non-family organisation. Due to the time, effort and money invested in a family business, it would be much more harrowing for family businesses to fail due to their personal and emotional ties.

Stability is also another key factor when it comes to the success of a family business. Whatever the hierarchy, age and maturity are often factors that determine who takes ownership and responsibility when it comes to making vital decisions. Whoever is ‘Head of The Family’ usually leads the business. Dependent on the individual, their ‘reign’ can impact the longevity of the business and overall stability. Reasons for departure are often illness, death and retirement. Unlike hiring externally, another family member will usually take to their birth right and stay in the position for a number of years just like older generations have done.

Family businesses are also very flexible. Unlike in non family firms, families have a tendency to muck in and get involved in a multitude of areas outside of their job role to ensure success for the company. By involving yourself in various different aspects of the business, this allows tasks to be completed in sufficient time, employees can add to their skill set and gain a thorough understanding of the industry they work in.

Another difference that sets family business apart, is having a long term outlook. Family businesses like to plan ahead, sometimes years into the future. Having these long term goals allows businesses to adopt a strategy that works. Knowing that you’re creating an empire for future generations to grow, can give business owners all the encouragement they need.

Finally, family businesses are known to have contributed their own money to ensure long‐term success. This could mean contributing capital, or taking a pay cut. This often comes in handy during challenging times, such as an economic downturn.

Issues for Family Businesses in the UK

Conflict is probably the main reason for the failure of a family business. The main reason conflict arises is due to an overlap of job roles, miscommunication and personal disputes. The fear of outside investment, as well as the Chairman and Chief Executive roles being held by the same individual, can hold negative connotations for family businesses. This can develop into inappropriate behaviour in the workplace and lack of productivity.

More ambitious family businesses understand that external equity or quasi-equity funding can help to achieve their growth aims, so this fear should alleviate over time.

It’s also common knowledge that many family businesses fail to prepare a succession plan. If the owner doesn’t determine who will take over leadership of the company when they step away from the role, this can lead to some difficulties. In order to prevent this, a well defined plan needs to be put in place.

Unfortunately, nepotism often plays a major role within family businesses. Some family businesses are hesitant to let outsiders into their organisations and make powerful decisions. This can often result in family members being given jobs in which they are under qualified.

How to Solve these Problems

The key considerations families must take, are to develop and implement a management succession plan. This should be on the agenda of every family business. It should be properly planned and succession should take place through a staged handover.

Family businesses should not forget that meritocracy is more important than birth right. If a family member is not fully committed to the business or doesn’t have the required attributes, they should not be put in charge.

Non-Executive Directors (NEDs) may be seen as an unnecessary cost to the family business. However, a NED can help to keep emotion out of the Boardroom. This is an important consideration when discussing the future direction of any family business.

How Ampios Can Help

You may need help getting there, but that help can be easily found. At Ampios we have years of experience in a range of different businesses and sectors. Whether you’re looking for an Adviser or a Non-Executive Director for your family business, we will be able to help you. Don’t hesitate to get in touch. 

A recent survey has revealed that 80% of UK Business aren’t prepared for when Britain bids its final farewell to the European Union. Technically speaking, we said Bon Voyage to our European neighbours at 11pm on the 31st January of this year. However, our little island is currently undergoing an agreed transpiration period that is due to run till the end of 2020. But with how things have gone so far, who knows what the future holds. 

Over the past few months, negotiations have been taking place in the hope that Britain can establish a future partnership with the EU. However, with conflicting interests, there is a great deal of uncertainty as leaders at the European Parliament have threatened to refuse consent to a future deal. For both parties to be somewhat satisfied, it raises this question: shouldn’t compromise be made? 

So What’s Next For Businesses In The UK? 

Throughout the rest of this month, the EU hopes to end negotiations and come to an agreement. But for a process that has taken four years and counting, it’s looking increasingly unlikely that us Brits won’t be heading towards any sort of deal. 

With this in mind, Boris Johnson has told us to prepare for a ‘No Deal’ Brexit. So why is it that only two in ten companies are ready for the changing trading relationships? 

With the UK being a largely service based economy, (think finance, legal and real estate). It may come as a surprise that manufacturing’s importance for the UK economy is more crucial than we may realise. Manufacturing is officially responsible for 10% of the economy and 9% of employment. While these figures may seem low, it is also key to note that nearly half of the UK exports and imports of manufactured goods go to, and come from, the EU. With this in mind, there could be major disruptions to the manufacturing industry such as delays at the UK-EU border and even added costs. In some cases, manufacturers could be forced to produce products to different specifications for the UK and EU markets.

If this all sounds a little too threating, fear not. If you’re in manufacturing, we’ve created a checklist to help you prepare. Read below to get our top ten tips on battling Brexit for your business. 

Our Tips On Battling Brexit

1. Understand the tariffs that will apply to your business. How they will impact on raw materials costs and ultimately your finished product costs. If you are unsure of the tariffs, click here  for more information.
2. To be able to import and/or export goods you need to apply for an EORI number (Economic Operator Registration Identification).
3. Speak to customers about the impact of cost increases on your product and determine the ability of your customers to either accept higher prices, or understand the impact of lower margins on your business profitability.
4. Understand the Supply Chain flow of your key suppliers and ensure they have a plan in place that won’t detrimentally impact you.
5. Look at the origin of your goods. Currently if they are of 50% British origin they are classed as tariff free.
6. Delivery time of products coming through UK ports will be adversely impacted by customs checks. This time delay will impact products from inside and outside the EU. Look to increase carrying stock values to remove this risk.
7. Familiarise yourselves more with the Incoterms. Negotiating the right one with your customers, having a clear picture of when the change of ownership of the goods take place as well as insurance liabilities. Visit the Government website for more information. 
8. Make an integrated cashflow forecast. Take into account the impact of new tariffs and duties. 
9. If you have EU\EEA employees working in the UK before 31 December 2020, they have, until 30 June 2021, to apply under the EU Settlement Scheme. If the individual has 5 years continuous residence, they will be granted approved status. Otherwise, pre-approved status will be awarded. Once 5 years continuous residence has been achieved, the applicant can apply for approved status, visit the Gov website here. 
10. If you intend to employ EU\EEA individuals who are not in residence in the UK by 31 December 2020, after January 1 2021 they will have to apply under the new immigration points based system, you can do so here. 

Prepare For Brexit With Ampios

So there you have it, if you feel there are areas that you’ve not addressed, don’t worry. We can support you in putting an action plan together. If you need business support, Ampios are here to help. Contact us for your consultation. 

 

 

Becoming a director of a company, whether it’s as you start your own business or have worked your way up the career ladder, is an exciting time filled with opportunity. Being a director can be very rewarding, satisfying and profitable – but it doesn’t come without risk. To do the best for your business, it is worth reminding yourself of the roles and responsibilities of directors.

 

The Role of the Board 

The Institute of Directors defines the role of the board as ensuring the company’s prosperity by collectively directing the company’s affairs while meeting the appropriate interests of its shareholders and relevant stakeholders. 

As a director, you are expected to establish and deliver the business’ purpose,  visions and values; delegate responsibilities to senior managers and be accountable to shareholders and stakeholders. You decide which tasks can be delegated and which will be best managed yourself, you review your successes and areas for improvement and plan for your future. 

But as well as your role and the personal and professional benefits this has for you, you should also be aware of the challenges and responsibilities that becoming a director brings and how you can overcome these. 

 

Legal Responsibilities 

The Companies Act 2006 details the additional legal responsibilities you carry when becoming a director: 

1. To act within powers in accordance with the company’s constitution and to use those powers only for the purposes for which they were conferred.
   

   As a director, it is important to be familiar with the articles of association for your business as they are likely to restrict your individual decision-making powers.

2. To promote the success of the company for the benefits of its members.
   

   You should act in good faith to promote success for the company and its shareholders. You need to consider the outcomes of your decisions for everybody involved in the business – employees, suppliers, customers and communities. It is also important to consider the impact your decisions will have on the environment, the reputation of your company and your business’ success in the longer term.
   
   All decisions should be made within the best interests of the company, not to benefit any individuals. However, be broad-minded when evaluating those interests, keeping in mind other stakeholders – the financial aspect is not the only perspective to consider.

3. To exercise independent judgment.
   

   As a director, you are legally obliged to exercise judgment independently and be prepared to question the decisions of others. If the existing board make decisions, it is important to question why that’s the best thing for the company. If you have a different approach in mind, you should voice it.
   
   

4. To exercise reasonable care, skill and diligence.
   

   As a director, you are expected to make decisions based on diligence, knowledge, skill and experience and are accountable for those decisions.If you have specific professional training (for example legal or accountancy training), you will be held to a higher level of accountability than less-qualified members of the board when decisions are made relating to your expertise.

    

5. To avoid conflicts of interest.
   

   A conflict of interest could arise if you have a close, personal interest in the business of competitors or other third parties such as suppliers. Alternatively, if you are responsible for a decision regarding an employee or potential employee with whom you have a close relationship (e.g. a family member or close friend), this would also constitute a conflict of interest.If you find that you have a conflict of interest, you must declare this to the board so that it can be resolved.

   It is important to ensure that your non-financial interests (personal beliefs and values, welfare and political views) do not take precedence over your lawful and ethical duties as a director.

6. Not to accept benefits from third parties.
   

   You must not accept benefits with the expectation of you doing, or not doing, something within your power to influence a decision.

7. To declare an interest in a proposed transaction or arrangement.
   

   If you have an interest in a deal or transaction, you must make it known. If a close friend or family member will benefit from you doing business with a specific supplier, you must declare this to your fellow board members.

You’re ready

Becoming a director should not be a daunting prospect nor anything to be frightened of. The risks are minimised as long as you comply with your legal responsibilities as a director. Following these rules will protect your business from malpractice and help to ensure your continued success. 

 

If you are worried about becoming a director and how to act in the best interests of your company, get in touch to discuss how we can help you. 

 

Martyn Jones, Specialist in Corporate Governance 

Discovering a cash flow problem within your business can create a daunting time of uncertainty and worry. Not only are you concerned with ensuring you meet your business demands, but you know that the bank, with money tied up in your business, is wanting to know how you’re dealing with it. 

Here is a guide to the ways that your bank may react. Use this to help you understand the potential changes to your lending agreement, anticipate these and consider how it could affect your business in the future. 

 

How will the bank react?

So far, they have supported you – backing your business plan, lending you money while ensuring that they monitor your progress. But now, they will see you as a greater risk to them and may make some changes to protect themselves. 

Your bank may have a variety of reactions to your funding problems, all changes made to your agreement with them to protect their lending. They may implement one or a combination of the following changes. 

• The offer of further support.
  Great news! Be aware though, this support will come at a price: additional fees or an increase to your current interest margin.
• An increase in price for their borrowing facilities.
  They could choose to do this in reaction to the increased risk to them. It may come in the form of a rise in interest margins or arrangement and monitoring fees.
• Heightened security requirements.
  The bank’s priority is to protect themselves so they may request a higher level of security – collateral against their money. They could request personal guarantees from the directors of your business, which may need to be supported by personal assets, rather than company assets. 

• The inclusion of additional financial terms and conditions.
  The bank could wish to monitor your business more closely to assess your recovery from your funding issue. They can request information of accounts every month, rather than quarterly, for example, or ask for weekly cash flow forecasts.
• The addition and/or tightening of bank loan covenants – such as increased debtor cover.
• Pressure on you to enter into costly bank products.
  Your bank may try to persuade you to consider some of their products to assist your business through your financial difficulty.
  This could be interest rate hedging (to provide protection from or minimise the impact of increasing interest rates); fixed interest rates or a switch from Overdraft to Invoice Financing – whereby its service fee would be based on your sales turnover.
• There is a risk that you be moved into “intensive care” by the bank.
  This could result in monitoring fees being levied.
• An independent assessment of the business.
  A bank could appoint independent accountants to assess your business on their behalf and report their findings back to them. The cost of this would be expected to be covered by you. 

 

How will these changes affect my business?

The overall impact of any of these changes would be a higher financial cost, management time being used differently and a period of worry and confusion. Thankfully, some people have experienced and overcome similar issues and are willing to advise, mentor or guide you through your funding problems. 

At Ampios, we have years of experience over a range of business sectors and have the expertise that you need. If you’re looking for help, support or advice, don’t hesitate to get in touch. 

 

Alan Wilson – Specialist in Banking Relationships & Borrowing Arrangements 

 

There are many situations when a business could find itself with funding problems. But what might bring about these problems in the first place and what can you do to prevent them? 

Financial Forecasting 

One cause of funding problems could be your financial forecasting – not budgeting and planning effectively. To escape this:

• Rather than focusing on the month-end financial forecasting, be aware of mid-month overdraft peaks. They can leave you with insufficient funds to cover the rest of your monthly expenses. 
• If you have borrowed money, ensure that your interest payments and capital repayments are achievable within your forecasted cash flow.  Having a debt service commitment that is too tight could leave you susceptible to a cash shortage or cause an overdraft excess. 
• Try to avoid having too much reliance on short-term debt. If you do, your loans may then require annual renewal and expose you to a withdrawal of loan arrangements or changes in the terms and conditions – usually not in your favour! 

 

Control of Cash

You could also expose your business to a funding problem due to mismanagement of cash. To avoid this:

• When purchasing capital assets, don’t use all of your cash. This could leave you short of future working capital for day-to-day trading purposes or finance business growth. 
• Have sufficient debtor control. Ensure you collect debts promptly and don’t allow yourself to be too reliant on one customer. If not, the interruptions to your cash flow could put pressure on your working capital and your borrowing limits. 

 

Preventing Funding Problems: In Summary

Take simple steps to prevent finding your business suffering from funding problems. Have awareness of your anticipated expenses and cash flow and don’t get caught by unexpected payments. This will allow you to maintain the confidence of your business’ funders and allow you to grow. 

 

Finding yourself with funding problems can leave you feeling overwhelmed or even helpless in your business, unsure of where to turn. At Ampios, we have years of experience across a range of sectors so if you need help, don’t hesitate to get in touch.

Alan Wilson – Specialist in Banking Relationships & Borrowing Arrangements 

Unsure about how well you are managing your cashflow? We are here to help you identify and overcome cashflow problems within your business.

Cash is like water. They can both go down the drain – but they both work best when they flow. Both can lead to the creation of riches, employment, life and vibrancy if well managed – even in tough times. However, when cash ceases to flow it’s likely to lead to a sick business in danger of terminal demise. 

Understanding your cashflow 

You’ll recognise when you have cashflow problems easily: you’re probably juggling who to pay and which payments you can afford to delay. Perhaps you’re not sure how you’re going to pay the wages next week and it’s likely that you’re having trouble sleeping soundly. 

What causes cash flow problems?

There can be a number of reasons: inadequate sales, not enough margin, changes in customer behaviour – including Covid-19, lack of stock… The list goes on.

The cause isn’t always under your control, but it can usually be addressed. What’s more, it needs to be addressed – otherwise, the problem will repeat itself. But right now, don’t run out of cash or you won’t have the luxury of time to fix underlying problems. 

What can I do? 

There’s a lot you can do to help yourself quickly. You need prompt action to address the short-term cash position. You may need the support of your bank which you’ll gain by making them have confidence in you. You need a clear plan.

A simple guide to solving a cashflow problem includes these steps:

• Understand and accept the problem
• Establish what you need and when
• Get buy-in from your whole team
• Identify sources of funding
• Identify savings that don’t fundamentally undermine the business
• Plan for action (with professional help, if you don’t have the skills or resource)

Your next steps

Finance specialists at Ampios, in conjunction with the North & West Lancashire Chamber of Commerce, are providing a free Business Cashflow Webinar on Wednesday 2nd September 2020 at 10.30 a.m. 

To put your business in a better situation, with a deeper understanding of the vital importance of cash and actions to take, book your place now.

Take a look at our other blogs about solving funding problems here. 

Businesses are facing tough times in light of Covid-19 and a deep recession. Some businesses will struggle and be beaten but if you’re a fighter, you can overcome these tough times. Focus on key priorities with agility, planning and determination and you can not only survive but thrive in the future. 

We can help you find the light at the end of the tunnel.

Here to Help

We want to be in your corner on this one, so we’ve put together a series of programmes and webinars designed to provide real-life solutions to what needs to be done. The first phase of free webinars commences on 2nd September 2020, dealing with perhaps the priority of all priorities: how not to run out of cash. 

 

Webinars

Cashflow – Cash is tightening and not sure what to do next? You absolutely, definitely must not run out of cash. We’ll show you how.

Wednesday 2nd September at 10.30 a.m.

 

Negotiation in Uncertain Times – There are many things a business will now have to negotiate, not just prices: do it badly and your business will suffer. We’ll show you how to do it well and get results.

Wednesday 9th September 2020 at 10.30 a.m.

 

Importance of a Good Banking Relationship – You’re likely to need the support of your bank, but that support will be conditional on the confidence of your bank in you. Our insightful banking experts will show you how to generate that confidence.

Wednesday 16th September 2020 at 10.30 a.m.

 

Urgent Brexit Preparations – Ignore it at your peril: many businesses will be affected and some of them in ways they haven’t realised. Whether you’ve done some preparation or not, don’t miss vital insights and actions as significant disruption draws closer.

Wednesday 23rd September 2020 at 10.30 a.m.

 

Investment Readiness – Investment comprising loans and equity will be tougher now but for the right businesses, with the right leaders, it can be done. Our experts will show you how to impress and gain the investment you need.

Wednesday 30th September 2020 at 10.30 a.m.

 

Leadership – With the disruption that’s coming, key people in your business will need to step up and lead from the front. If they do it well, they’ll be the reason the whole team is motivated and implements your game plan to succeed. Learn crucial insight and techniques to develop true leadership.

Thursday 8th October at 10.30 a.m.

 

Register Now

Your business will need to be match-fit to face these tough times, so get it ready to fight for its future by joining in these webinars. For full programme details and to register, click here. 

Consultant, Coach, Mentor, Adviser or NED?
It doesn’t matter how experienced you are or how long you’ve been in business, you can’t know everything. Sometimes, you just need a bit of help or simply pointing in the right direction.

 

Who can I turn to?

Ideally, what you need is someone experienced with a fresh pair of eyes and another perspective looking at the problem with you. Even better if they’ve seen it before and can show you how to deal with it. 

Who do I choose?

Persevere with a Google search and you’ll find that there is help out there in the form of consultants, coaches, mentors, advisers and NEDs (Non-Executive Directors).

The titles may be something you aren’t overly familiar with and can leave you feeling overwhelmed, wondering what these people do, how they do it and which will be best for you at this particular time? 

In this article, we will go through some of the different options of people you can approach when you need a bit of help.

 

Consultants

Consultants are ideal for specialist, individual projects that you have neither the knowledge nor time to complete yourself.

They are:

• Experienced, senior professionals who understand your business and your problem and offer a solution.
  This solution will be delivered in an agreed timescale for an agreed price. 
• Work closely with you and your staff on a project basis.
  They work with you for as long as it takes to complete the specific project. 

The stereotype of consultants giving the impression that they know it all, charging you for a glossy report with little or no fresh content and telling you how to run your business is largely false, so don’t be afraid to approach a good consultant for help.

 

Coaches

Coaches are used to help you to become better prepared to address your problem yourself. 

They: 

• Allow you to see your business from a different perspective, explore your thought processes and enable you to find alternative ways to do things. 
• Provide you with the confidence and mindset to face your business concerns. 
• Work with you for any length of time.
  Coaching relationships are usually for short periods but can last for years when necessary. 

Find a coach you can relate to, confide in and trust.

 

 

 

 

Mentors

Mentors are suitable for MDs or business owners who need somebody to share their experience with you and act as sounding boards for your ideas. 

They:

• Usually have had careers at a senior level in the public, private or 3rd sectors.
  Have experience of business management, facing and overcoming problems similar to yours. 
• Offer experienced guidance and advice for your ideas and plans. 
• Are often from a different business sector to you, offering a different perspective.
  If your problem is sector-specific or covered by specific constraints and regulations, you may need a mentor with similar business experience to you. 
• Mentoring relationships usually last between 3 and 12 months, depending on individual circumstances. 

Currently, a large portion of the UK is well covered by various business mentoring schemes which endeavour to match clients with mentors who have the appropriate experience. Often, these schemes are partially or even fully funded so make sure you check these out! 

 

Board Advisers

Board Advisers are perfect for longer-term guidance on business growth and business issues. 

They are:

• Independent Board Advisers who sit on your Board – even if the Board only consists of you and them. 
• Extremely experienced with a range of business skills and an appreciation of good governance principles, financial propriety and risk management. 
• Many work as part of a consortium (similar to ours at Ampios).
  This means they have immediate access to the expertise of others in addition to their own. 
• Ask considered questions, test your reasoning and thought processes – helping you to take your business where you would like it to go. 
• Bring a fresh perspective to the Board.
  Won’t be influenced by “How we normally do it”. 
• Do not have management responsibilities for your business.
  They are responsible along with the Board to hold management to account. 
• Not directors and are not registered as such with Companies House. 
• Self-employed and paid on an invoice or retainer basis.
  It is usual to agree renewable, 12-monthly contracts with them. 

 

Non-Executive Directors (NEDs)

NEDs are appropriate for adding credibility to your business or due to the requirements of your Articles or Objects. 

They are: 

• Independent Board Advisers, performing the same function as advisers. 
• Registered as Directors of your business with Companies House.
• Paid as Directors i.e. employees as opposed to the self-employed contractor status of a Board Adviser. 
• The number of NEDs you need on your board varies.
  This depends upon your Articles (or Objects, if you are a charity). 
• Have a vast network of useful contacts.
  They will be willing to share these with you if needed. If they haven’t experienced your problem themself, they will know someone who has. 
• Work with you for a fixed time, usually 3 years. 

 

Which is right for me?

All of the above professionals come with their advantages and potential problems. Hopefully, knowing the nature of your problem and the needs of your company will assist you in choosing the best help for you. 

Be aware that all of these groups have people who are more experienced or qualified than others. So you must conduct research and find someone who can demonstrate that they have the skills, knowledge and practical experience to help you. But the help is out there and you are not on your own. 

 

We can make finding the right help for you simple. 

At Ampios, all members of our team are Board Advisers and all have previously worked as Consultants. Most of us are NEDs. Many of us are also Mentors and we have some excellent Executive Coaches in our ranks. 

Together, we’ve seen it all and done it all. So, if you are searching for help, don’t hesitate to get in touch.

 

Martyn Jones, NED, Board Adviser and Mentor 

 

If your business suffers a funding problem, there is a possibility that it may cause you to breach a financial covenant. What happens if you do and how can you fix it?

 

What is a Covenant?

Covenants are the terms set out within a loan that require you (as the borrower) to fulfil specific conditions. Also, they may restrict your actions or activities. The finance documentation from the bank or other lenders will invariably contain covenants – and you will have signed, agreeing to adhere to them for the duration of your borrowing arrangement.

Covenants might be:

• Financial – minimum interest cover, debtor cover, debt service cover.
• Information based – providing management and annual accounts within specific time frames (e.g. annual accounts within 6 months of your financial year-end).

 

 

Consequences of Breach of Covenant

A breach of an agreed covenant will have negative consequences. So, if you have breached a covenant or believe you might breach a covenant, then you need to take action. It is helpful to understand how different stakeholders will respond to a covenant breach.

 

Lender’s Reaction

This is an opportunity for the lender to re-price, blaming the increased risk to them. The lender could also request additional security or place the business into “intensive care”.

If you breach a borrowing limit you could also incur this course of action.

 

Auditor’s Reaction

A continuing breach of covenant will concern your auditors when they sign off your business’ Annual Accounts to be filed at Companies House. If your auditor provides a qualified opinion, due to these issues, then that could affect your business creditworthiness. The credit rating agencies and, perhaps, your suppliers will look at your Annual Accounts for any negative disclosure.

 

Suppliers’ Reaction

If your credit score is lowered due to a breach of covenant, your suppliers could worry about your ability to pay and reduce your credit limits or, even, request payment before supplying goods.

 

As such, a breach of covenant could have knock-on effects on your business and exacerbate your original financial problem. Early action is always useful. Telling your bank or supplier that you have a problem my sound like washing your dirty laundry in public but keeping quiet and allowing them to find out after the event will only erode their trust.

 

 

 

 

What should you do next?

The consequences of a breach of covenant could significantly impact your ability to trade but there are people out there who can help.

Ampios have years of experience across a range of sectors. If you need support with any funding problems within your business, don’t hesitate to get in touch.

 

Alan Wilson – Specialist in Banking Relationships & Borrowing Arrangements 

 

 

 

 

As much of the country eases its way back to work after a gradual relaxation of lockdown, conducting a workplace risk assessment will be crucial. The Health and Safety Executive (HSE) has announced an imminent return to ‘proactive’ inspections. We know that ensuring businesses implement the new guidance on working safely during coronavirus will be high on the agenda.

So how do you get back work safely during the coronavirus pandemic? What in particular will the regulator be looking for?

Workplace risk assessment

As is often the case, the first step is to carry out a workplace risk assessment. This involves consulting with employees to identify the hazardous events that have the potential for the virus to spread, including:

• Situations that bring people into close proximity
• High-touch surfaces, potentially through shared-equipment etc.

What are you doing already to control these events and what more could you do to reduce the risk further?

Workplace risk assessments should be shared with employees and where members of the public have access to your facilities, posted on your company website.

As we know, high standards of hygiene are critical in the fight against the virus. So, the regulator will expect to see enhanced cleaning procedures in place, especially of objects and surfaces that are regularly touched.

Mitigating risk & being socially distant

The number of people sharing the workplace is a significant factor influencing the risk. Whilst keeping businesses operating effectively and getting back to work is important, it is still necessary for people to work from home wherever possible.

For those who have to be in work, the regulator will want to see that all reasonable steps are being taken to help employees and others keep to a 2m distance.

Some safety initiatives are:

• Arranging a one-way system for employees and visitors
• Rearranging workplace layouts to create greater distance between work stations
• Partitions where close proximity is unavoidable
• Implementation of signs to keep employees and visitors informed of procedures
• Increased use of radios and tannoy systems to reduce movements around the workplace.

Realistically, it’s not always possible for people to be 2m apart. The government guidance provides useful suggestions for managing the transmission risk. As a result, screens and barriers are increasingly being used to separate people from each other. Plus, introducing ‘fixed partnering’ arrangements to reduce the number of people each person has contact with is also more normal.

Be site-specific

There is no one-size-fits-all with risk assessment, every workplace is different, and so the HSE inspector who calls on you will want to see that you’ve considered your site-specific risks rather than taken a generic approach.

Summary

For those not used to dealing with the HSE, carrying out risk assessments and implementing safety controls can be a daunting prospect.

At Ampios, we have years of experience across a range of sectors so if you need help, don’t hesitate to get in touch.

 

Michael Emery – Coaching for Safety Specialist