In this time of uncertainty and shared concern, we have been closely monitoring the Covid-19 situation and have taken actions to protect the health and safety of our team and clients and to ensure continuity for all those that work with us.
In addition to our strong corporate finance credentials, we are also highly experienced in advising businesses facing trading and cashflow challenges. We have operated through three recessions and our Managing Partner Andrew Thomson‘s own experience includes a period in the restructuring team of a “Big 4” accountancy firm and an 18 month assignment supporting the stressed portfolio of a high street bank. Other members of our team have a similar blend of experience.
Since we are not insolvency practitioners, our mindset is always to work to find a positive outcome and we are not rewarded when businesses fail. We are currently talking to many clients about the impact that the coronavirus crisis might have on their business and assisting them in responding to the impact to ensure business continuity.
How we can support you
Across our corporate finance, debt advisory and financial modelling teams, we are able to offer a number of services which will help you identify and manage risk within your business, including:
Identification of vulnerabilities
- Short term cashflow modelling;
- Medium term profit, cashflow and balance sheet modelling;
- Stress testing of business plans; including demand and supply risk factors;
- Medium term scenario cashflow modelling;
- Monitoring of key vulnerabilities on forecasts (commodity prices, consumer confidence, scarcity of labour etc.); and
- Review of customer contract and supply chain exposures.
Advice to stressed businesses
- Advice on availability of financial support (e.g. government backed schemes recently announced);
- Advice on options to delay and smooth cashflow pressures – including staffing measures, other cost reductions or cost pauses;
- Assistance with management of key external stakeholders, including lenders and HMRC;
- Refinancing of amortising debt products with a debt product with a lower cost to serve – there are many debt providers still open for business;
- Accelerated debt and equity raising; and
- Accelerated M&A processes.
In response to this crisis, the UK government has recently announced unprecedented measures to help businesses survive. Chancellor Rishi Sunak has unveiled a new £330 billion fund for struggling firms, with the Coronavirus Business Interruption Loan Scheme (CBILS) set to support the continued provision of finance to UK businesses during the Covid-19 outbreak. The CBILS, taking effect from 23rd March 2020, will be administered by the British Business Bank through selected debt providers, and will offer low-interest loans and other types of finance to businesses suffering from the fall out of the coronavirus crisis.
At HMT, we have an in-depth knowledge of the market, products and funds, as well as the new emergency measures recently put in place. For more than 28 years we have provided capital and debt advice to businesses, shareholders, management teams and major financial investors, consistently demonstrating our ability to structure the most appropriate funding package for our clients throughout the economic cycle including three recessions.
We are staying open for business as usual and to discuss how we can assist you through the current crisis, please do not hesitate to contact our team 01491 579740.
Stay safe !