As part of Menzies commitment to sharing #BrighterThinking, our teams of accounting and business advisors have been providing their opinions on some of the leading hot topics raised within some of the UK’s leading national, regional and specialist press titles.
Here follows a summary of Menzies in the media for December 2019.
Tax for free ports
Transport and Logistics specialists Andrew Galliers and Sean Turner explore how creating 10 new ‘free ports’ following the UK’s departure from the EU and may impact HGV operators.
“Planning for the introduction of free ports is not easy for cash-strapped hauliers. On the one hand, there is a lack of certainty about whether Boris Johnson’s government will be in power to implement its recommendations, and the Brexit deadline, which is currently set for 31 January 2020, could once again be missed, or a period of transition would take place.”
The battle for talent just got tougher
In this strategic business feature, strategic business advisor Martin Atkins and People Solutions specialist Ed Hussey explore the impact of rising UK wages and wider issues for businesses seeking to attract new talent.
“For businesses of all sizes, the recruitment problem is multi-faceted but ultimately stems from a shortage of highly skilled, versatile individuals. In large organisations, highly experienced candidates often have a large amount of bargaining power when it comes to negotiating their salary.”
Thinking of splitting?
Property and construction specialist Lucy Mangan evaluates why property developers are choosing to rent out their properties and further diversify their business models.
“In the current economic climate, many developers are finding that they are unable to sell their properties quickly, or for their full value, so more and more are opting to split their investment portfolios. Rather than making a loss, this strategy allows them to ‘wait it out’ until the market picks up, whilst bringing in some rental income.”
The future of Clintons
Business Recovery specialist Simon Underwood’s comments were featured in response to the news that Clintons had entered administration.
“This decision to place Clintons in administration and then immediately sell it to Esquire Retail is unlikely to solve the card retailer’s underlying financial difficulties. The company has a significant property portfolio of more than 300 stores and overheads to match. In addition, the company has been challenged by the rise of online card sellers, such as Moonpig, and the growth of electronic card giving, particularly around the festive season.”
Corporate Finance specialist Ross Wiggins – who led the due diligence on this deal – shares his comments on Funding Xchange’s news of a news of the completion of a new round of funding.
“Funding Xchange is an extremely innovative platform, which provides a much-needed solution to the challenges modern banks and lenders face. It was an honour to be involved in the project and I look forward to seeing the company achieve great things in the years to come.”
A sign of the times
Insolvency specialist Bethan Evans explores how and why small business owners can often overlook the trends impacting on the wider marketplace
“Failing to adapt to market and technological changes could risk falling behind competitors, potentially leading to financial failure. Being alert to the signs of the times and adopting a culture of continuous business improvement can help companies to stay ahead of the curve and maintain a healthy financial position.”
The future of Arcadia
Business Recovery specialist Simon Underwood responds to the news that Arcadia remortgages the flagship Oxford Street store to stabilise the group.
“In securing its £310m mortgage deal for Topshop’s flagship Oxford Street store, Arcadia Group joins a flurry of other retailers, including Clintons, who have chosen to restructure ahead of Christmas. The decision may allow them to benefit from an injection of seasonal sales revenues, in order to refocus on their trading strategy in the New Year.”
Tax savings for planet savers
R&D Tax specialist Anthony Lalsing explores how businesses that reduce their environmental impact could benefit from reductions in their tax bills.
“An increased awareness of issues such as climate change and plastic pollution has caused many manufacturers to go back to basics. Not only are they carefully considering the green credentials of the products they sell, they are also placing a greater focus on the carbon footprint of their production processes. As well as helping them to maintain margins by responding to customers’ demands for more sustainable products, such activity could also qualify as R&D.”
Seeking a more stable tax haven?
Tax technical specialist Will Sweeney discusses the options that international high-net value investors have against the backdrop of mounting political pressure to introduce greater transparency.
“International investors with assets of more than £500 billion currently choose to hold them in the Crown Dependencies of the Channel Islands and Isle of Man, attracted by the islands’ specialist financial industries, well-managed regulatory procedures and a stable fiscal environment. This provides vital benefits to the UK, channelling inward investment into mainland businesses, providing much-needed liquidity and supporting an estimated 250,000 jobs.”
Acquisition doesn’t have to be taxing
International business specialist Andrew Mosby explores how international businesses looking to expand can weather the integration process by planning their post-acquisition tax and HR related strategies.
“By thinking ahead, SMEs pursuing a sale can structure their businesses with foreign investment in mind and make sure they are prepared for any changes that could affect their way of working, particularly if they are acquired by a much larger overseas company.”
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