ICSM's Ian Carrotte on company insolvencies: 'They usually collapse when the banks and the lenders decide to call in their loans or HMRC loses patience and begins a winding up order'
Ian Carrotte of the credit intelligence group for the printing and allied industries said: “Previous downturns for the printing trade have seen a long hangover with some firms simply hanging on after things pick up. They usually collapse when the banks and the lenders decide to call in their loans or HMRC loses patience and begins a winding up order.
“However as in all recessions some businesses do well as their competitors fall into administration leaving a clearer field. And dare I say some cynical types will phoenix their companies and essentially start up again with no historic debt. That is a bad practice that has gone on for years which often badly affects suppliers who are left with unpaid invoices.
“We’ve seen a rise in voluntary liquidations as the owners decide to retire as they have had enough – or to start a different type of business altogether. That’s a sign of the times as those with long memories know how tough a recession can be.
“Inflation has hit everyone with customers curtailing spending – but the hike in paper prices in particular has really hit business. That is in part due to inflation in general – the usual suspects of interest rate increases, energy price rises, the Brexit business deal and Covid hitting world prices such as China’s slowdown in exports – but President Putin has a lot to answer for. Ukraine’s supply lines of paper and pulp as well as the trading block on Russia has led to shortages – and that means price rises.
“The printing industry is still in transition. Since the invention of the internet and emails the numbers in terms of volume of newspapers, magazines, leaflets and brochures has declined. I feel we are near the bottom of that particular cycle as book publishing has actually held up well as electronic reading devices have reached a plateau. Packaging has seen a boom with home deliveries and people working from home - as has label printing and I can only see this sector continuing to do well. And in the related sign industry the wide format printing business is often the section of a print firm that turns a profit. You only have to see the amount of firms in this division that have recently appeared when you visit the trade shows.
“When we will again see the glory days of printing return is open to question – but the traditional print industry does well when the economy is buoyant – and at the moment that seems some months if not years away.”
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com
About ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk