Pre-tax profits tumbling, says Baker Tilly research
More than a fifth (21.8 per cent) of small and medium sized businesses in the West Midlands experienced a 50 per cent decline in pre-tax profits last year. That's according to research from accountancy firm Baker Tilly.
The findings appear in Baker Tilly's SME Distress Monitor which was produced in association with analyst Company Watch.
The figures are based on 2010 accounts filed with Companies House by 1,435 West Midlands businesses with a turnover between £5m to £25m.
Additional findings show that, of those companies which filed full accounts for 2010, one in ten also reported more than a 30 per cent downturn in sales.
Guy Mander, restructuring and recovery partner at Baker Tilly, said: "Our research highlights how severely short term debt pressures are mounting for SMEs in the West Midlands.
"As liquidity is tightening, it is essential that business owners take prompt action at an early stage to maximise the financial options available to them, in order to minimise future problems."
