'More than half' of firms not profitable in 2009

Date: 7th May 2009

More than half of British small firms have not made a profit this year, new statistics have revealed.

Figures published by Continental Research show that 55 per cent of smaller companies have yet to make any earnings in 2009, while almost a fifth have not done so since the second quarter of last year or earlier.

As a result, more managers and owners could turn to accountants for advice on improving their cashflow.

Director of the organisation, Shiona Davies, believes that the "uncertainty" surrounding the UK's business economy is not helping.

"One minute we are hearing about green shoots and that there is some evidence of economic confidence returning, but then there are also reports saying that it will be months, if not years until things pick up," she said.

Statistics published by the Federation of Small Businesses last month showed that nearly 70 per cent of firms believed the government's budget had not helped the sector.