Home Business News Financially healthy companies are also heavily impacted by Covid-19

Financially healthy companies are also heavily impacted by Covid-19

by LLB Reporter
22nd Apr 20 6:26 am

More than one in four UK companies are being heavily impacted by the corona pandemic. That is the conclusion of the business intelligence specialist Graydon UK, based on the financial health of UK businesses and the current economic situation.

It is estimated that of all companies that Graydon UK identified as healthy at the beginning of March 2020, around 30% are now facing difficulties.

Simon Blackwell, Managing Director of Graydon UK said, “The damage to business is significant, and the numbers are very concerning.

“We aren’t used to having to publish these kinds of statistics.” More than one in four UK companies (27,2% of the total business population) are being heavily impacted.

“The consequences are far reaching, especially considering how interconnected our economy is. However, it is not all doom and gloom, there are also companies that are currently experiencing little to no impact from this crisis.

“More than 70% of the business population is able to continue doing business under these circumstances although in the longer term the expectation is that these companies will also start feeling the impact.”

Data Scientists at Graydon offer insight into the financial health of companies before the current restrictions were imposed and also the scale of the impact that they are experiencing as a result of those measures.

Blackwell added, “Of course, financially robust companies can cope better with this situation, however, we are seeing that even among healthy businesses as many as 14%  may face challenges.

“Even food stores that are still open and doing really well when it comes to sales, are highly impacted because of the extra costs of staffing (with overtime pay), and delivery and logistics costs”

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