UK businesses warned on recovery preparations

Date: 16th October 2009

Britain's businesses should make preparations now to capitalise on the forthcoming economic recovery, Lloyds TSB Commercial has advised.

New analysis from the firm, released today (October 16th), showed that 31 per cent of firms have taken no steps at all to prepare for the end of the recession.

This is despite the fact that 51 per cent recognised that "well-prepared" businesses were the best-placed to profit from the recovery which followed the end of the last economic downturn.

Moreover, a majority of firms were aware of the potential risks that could catch them out.

This included the 64 per cent which believed they could suffer from "low cash resources" in future and the 22 per cent who were concerned they might not be able to meet rising demand for their services.

John Maltby, managing director of Lloyds TSB Commercial, said: "The shape and scale of any recovery is still uncertain, but one thing is clear - those businesses already looking towards the upturn and planning how to make the most of it, are the ones which will thrive.

"Those firms that sleepwalk towards recovery risk not just losing out but falling into the overtrading trap."

The UK economy is predicted by the International Monetary Fund to shrink by four per cent over 2009, before returning to growth next year.