Winter takes its toll on SMEs

SMEs in the UK are facing losses of more than £7bn from the worst winter in decades, new research by Lloyds TSB Commercial has shown.

As the impact of Britain's big freeze becomes clear, the research shows that seven in ten (70%) small and medium sixed firms have been affected by the freezing conditions that have wreaked havoc across many parts of Britain.

Four in ten (39%) have been directly affected with their premises being closed or cut off. Slightly more (42%) have suffered indirectly with disrupted supply channels or obstructed delivery routes. Less than a quarter (23%) of SMEs have been lucky enough to emerge unaffected. A very small number (7 per cent) have been fortunate enough to take advantage of the conditions and have actually prospered during the Winter months.

Businesses in Wales suffered the most direct impact (59 per cent) alongside firms in the North West (48 per cent). Companies in the Midlands appear to have fared better than anywhere else with a third (33 per cent) in the East Midlands experiencing a direct impact and around the same number (30 per cent) directly impacted in the West Midlands.

With the severe weather making travel nearly impossible in many places, many SMEs were left with no option but to shut up shop. More than a third (37 per cent) were forced to close down for at least a day , while one in eight (14 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 nearly six in ten (56 per cent) SMEs. More than a third (36 per cent) claim to have taken a hit of up to £10,000. One in eight (13 per cent) estimates the cost to have been somewhere between £10,000 and £30,000. And, one in twelve (7 per cent) believes the cost could be more than £30,000. A small number (4 per cent) believe that the cost to their business could be more than £50,000.