9:31am Wednesday 17th March 2010
By Ron Godfrey
SMALL and medium-sized businesses in Yorkshire are facing losses of more than £566 million from the worst winter in decades, according to research by Lloyds TSB Commercial.
As the impact of Britain’s big freeze becomes clear, the research shows that 73 per cent of small and medium-sized firms (SMEs) in the region have been affected by the freezing conditions that wrought havoc across many parts of Britain.
Two-fifths have been directly affected with their premises being closed or cut off and 50 per cent have suffered indirectly with disrupted supply channels or obstructed delivery routes.
Some 16 per cent of SMEs in the region have emerged unaffected and 11 per cent have taken advantage of the conditions, prospering during the winter months.
With the severe weather making travel nearly impossible in many places, many SMEs were left with no option but to shut up shop.
Some 30 per cent were forced to close down for at least a day, while 17 per cent had to halt business for at least five days – a full working week without any trade. The disruption caused by the harsh winter conditions has had a direct financial impact on the bottom line for 61 per cent of SMEs in the Yorkshire and Humber.
Nearly two-fifths (38 per cent) claim to have taken a hit of up to £10,000, while 20 per cent estimate the cost to have been somewhere between £10,000 and £30,000.
Two per cent believe the cost could be more than £30,000.
The additional cost of winter comes at a time when 35 per cent of SMEs in Yorkshire and Humber have reported negative growth in the last financial year.
John Robson, regional director for Lloyds TSB Commercial in the North and Midlands, said: “Businesses in Yorkshire have faced a double blow over the past few months.
“They have had to grapple with the downturn in trade as a result of the recession, as well as the impact of the severe weather conditions.
“The combined impact of both the recession and winter will inevitably have caused cash flow problems for many businesses.”
© Copyright 2001-2012 Newsquest Media Group
http://www.yorkpress.co.uk/trade_directory/