Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • European Businesses Facing Increased Costs Due To Supply Chain Disruption
  • Dementia Advocate Shares Tips For Supporting People With Dementia When Flying
  • SME Today talks to Sa’ed Anabtawi, Product Director, WOLF
  • The Truth Behind ‘Sickies’
  • Five ways to monetise your business EV chargers
  • New book on conquering fear of public speaking
  • 1 in 3 employees anxious about lack of first aiders at work
  • What SMEs risk when their IT provider gets bought out
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»News»Struggling businesses hoping for a reprieve from challenging conditions in 2023 face disappointment

Struggling businesses hoping for a reprieve from challenging conditions in 2023 face disappointment

0
Posted By sme-admin on January 30, 2023 News

Struggling businesses hoping for a reprieve from challenging conditions in 2023 face disappointment, warns Institute for Turnaround

IFT Chair Andy Leeser.
IFT Chair Andy Leeser.

Inflationary pressures, rising energy prices and labour shortages mean demand for turnaround expertise among distressed businesses will continue to grow in 2023, according to the Institute for Turnaround (IFT).

Last year IFT members, who help underperforming businesses avoid unnecessary insolvency, saved in excess of 80,000 jobs as initiatives to fix finances and revamp growth strategies bore fruit. Members also helped UK companies deliver more than £3.6bn of shareholder value.

But in its latest Societal Impact Report, the IFT predicts increased demand for its services among struggling businesses this year with the retail, automotive and casual dining sectors likely to be among those hit hardest as consumers tighten their belts. The manufacturing sector is also expected to remain the sector most in need of turnaround support.

“The directors behind UK businesses large and small, having risen to the manifold challenges of the COVID-19 Pandemic and associated lockdowns might have expected a period of calm to recover and rebuild. Instead, firms have found themselves faced with multiple new challenges. A cost-of-living crisis is hitting consumers, whilst a cost of doing business crisis is combining with pre – existing stresses to put a great deal of pressure on UK PLC,” says IFT Chair Andy Leeser.

Whilst it is true that inflation is predicted to continue falling from likely peaks reached towards the end of 2022, it is still expected to end the year well above the Bank of England’s two percent inflation target. Borrowing costs, and borrowing conditions, will most likely remain challenging. Rising prices and wage pressures, a major feature of the business environment of 2022,will also remain big headwinds for business in 2023. All these factors are still working their way through to the balance sheets of UK businesses, with much of the consequences still to be felt.

The report adds: “Among IFT practitioners, retail, automotive and casual dining are expected to see the biggest increases in demand for turnaround management over the next 12 months, in part reflecting consumers squeezed by rising energy bills, higher food prices and increased mortgage costs. This was backed up by data from Companies House that showed that the same sectors saw steep increases in the number of distressed companies in the last quarter of 2023.”

Despite the distinct benefits turnaround experts can bring, many companies remain reluctant to appoint a turnaround adviser until cash flow pressures are extreme, which can limit the range of restructuring options available. The challenges and risks identified in the report, in addition to the uptick in fortunes experienced by businesses that engage short term professional expertise suggests that UK businesses under stress should act now to engage accredited turnaround support.

About The Institute for Turnaround (IFT)

The Institute for Turnaround (The IFT) is the UK’s leading membership organisation for turnaround experts. Our members and corporate partner organisations comprised of professionals, bankers, investors, and advisers are accredited to the highest standards and help underperforming businesses avoid unnecessary insolvencies.

The rigorous process to become an accredited member makes the IFT unique, we are the only membership body to accredit turnaround professionals. We are an incubator for turnaround talent, connecting, nurturing, and developing a community of experts at all stages of their career.

More information can be found here, 

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Dementia Advocate Shares Tips For Supporting People With Dementia When Flying

Are you flying blind on your most important business decisions?

OneMetric forms strategic partnership with RevOps expert to drive UK growth

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
Personal Pension offer
Events Calendar
    • Marketing
    August 29, 2025

    OneMetric forms strategic partnership with RevOps expert to drive UK growth

    August 28, 2025

    The Seven Phases of Festive Shopping and How to Target within Each Effectively

    • Finance
    September 3, 2025

    Five ways to monetise your business EV chargers

    September 1, 2025

    Are you flying blind on your most important business decisions?

    • People
    August 14, 2025

    A Life Worth Saving – A Tribute to Dame Stephanie Shirley CH, 1933–2025

    August 12, 2025

    Finance Director Returns As Judge For National Business Awards

    • Health & Safety
    September 2, 2025

    1 in 3 employees anxious about lack of first aiders at work

    July 1, 2025

    Temperatures Soaring: Is Your Workplace Becoming Unsafe?

    • Events
    July 22, 2025

    South West Expo Delivers Outstanding Event at Swindon’s STEAM Museum

    July 4, 2025

    £20k grant for female-founded SME up for grabs

    • Community
    July 11, 2025

    Building community, one cause at a time

    June 23, 2025

    Celebrating One Year In Fairford Supporting The Community

    • Food & Drink
    August 22, 2025

    How to get stocked by major retailers as an SME

    July 18, 2025

    Warning to Small Businesses Over New Food Waste Regulations

    • Books
    September 3, 2025

    New book on conquering fear of public speaking

    August 7, 2025

    Learning to Leave a Legacy in Business

    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • People
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.