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The Euler Hermes UK Cash Flow & Profit Report shows that tighter credit
conditions, surging costs and deteriorating demand served to undermine the
performance of companies.
In line with the worsening economic climate, payment delays from clients
continued to increase, rising at their fastest rate in nearly eleven years of
data collection.
Fabrice Desnos, Chief Executive Officer, at Euler Hermes UK explained: “The
latest data suggested that UK plc is, not surprisingly given the lethal cocktail
of stagnant activity and rising costs, suffering markedly, registering the
greatest fall in profitability in at least nine-and-a-half years.
“Not surprisingly cost pressures had the biggest negative impact on
profitability, although highlighting the increasingly fragile nature of the
economy, domestic demand also had a strong negative impact on profits.
The data showed a cut in real terms of free cashflow, as payment delays become
more common in an increasingly difficult operating climate.
Source:
RedAlert
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