BUSINESS ADVICE
“…there are practical steps that companies can take to minimise risk, protect their business and find new opportunities.”
title on goods. When purchasing, paying the minimum deposit and collecting goods promptly will help to protect against loss if the supplier goes into liquidation/administration. 4. MITIGATE RISK. Practical steps that can reduce risk include making sure that there is room for negotiation in contracts. Avoid fixed-price contracts to protect your company from exposure to rising input costs or timing changes due to issues with procurement. If you purchase goods or provide services outside of Northern Ireland (including in the Euro zone), consider implementing an exchange risk management mechanism. Limit exposure to companies where you are an unsecured creditor. Finally, consider agreeing a settlement if you have a customer in financial difficulty.
from subsidiaries, and managing salary dividend extraction for directors. Good financial record keeping strengthens business performance and decision making. Record key decisions taken at board level explaining the rationale and support with relevant financial or other information. The supports put in place to help businesses survive and protect jobs during the pandemic resulted in lower rates of business failure than would otherwise have occurred. However, with the supports now coming to an end and multiple challenges facing the construction sector, not least rising input and energy costs, it is likely that there will be a significant surge in businesses experiencing financial difficulty in the coming months. While inflation, cashflow problems and supply chain issues will undoubtedly force some businesses to restructure and/or postpone investment, others will find new opportunities to innovate and grow. Now is the time for construction companies to seek advice on their options and take the necessary steps to weather the current storm and build a sustainable future. For further information, watch Mills Selig and FPM’s joint webinair: Recession Proofing Your Business on CEF NI’s YouTube channel.
The authors…
Gary Digney Partner – Restructuring and Recovery FPM Accountants. Seamas Keating Partner – Restructuring and Recovery FPM Accountants. Richard Craig Partner and Head of Restructuring & Insolvency, Mills Selig.
Mills Selig, 21 Arthur St, Belfast BT1 4GA T: +44 (0)28 9024 3878 www.millsselig.com
5. ADHERE TO GOOD BUSINESS PRACTICES.
Anticipate developments that could impact your business and work out a strategy to deal with them. This could involve forming group structures to protect elements of the business, regularly invoicing between group companies, managing profit extraction
1-3 Arthur Street, Belfast BT1 4GA T: +44 (0)28 9024 3131 www.fpmaab.com
www.northernbuilder.co.uk
FOLLOW US ON:
NI BUILDER | 55
Made with FlippingBook - professional solution for displaying marketing and sales documents online