WALESTOP3002008 29
WALESTOP300
NIGEL THOMAS
Partner in Deloitte's
audit practice
"WE work with clients across the entire
spectrum of business sectors and many of
our clients are finding market conditions
tougher than they were 12 months ago.
During these turbulent and challenging
economic times, the importance of strong
accounting and financial controls and
robust corporate governance procedures
is fundamental. It helps to ensure that
businesses accurately understand their
financial position and can provide
confidence to investors, lenders,
customers, suppliers, employees and any
other stakeholders. We have an excellent
track record of working with both high
growth local businesses, listed companies
and major multinational corporations in
the region and have helped those
businesses to establish their financial
systems and controls. This has not only
supported their growth plans but also
helps businesses to meet new regulations,
such as the Sarbanes-Oxley Act for
US-owned businesses or the equivalent
standards currently being introduced for
Japanese-owned companies.
We are also increasingly deploying our
financial accounting and analysis skills,
looking at cash flow forecasts and
management of working capital and
supporting businesses who are
implementing restructuring plans.
However, even in these difficult markets,
we continue to work with a number of
high growth-potential companies in
Wales.
As market conditions improve, we look
forward to working with the next wave of
growing businesses who will look to the
stock market for flotation or seek other
opportunities to fund their growth plans."
COLIN JOHN
Corporate finance
director
"LIKE their counterparts elsewhere in the
UK, the Top 300 companies in Wales have
had to deal with the aftermath of the
global financial crisis, as well as seeking to
come to terms with the impending
economic recession.
However, despite the turbulent business
environment, the survey revealed that
78% of respondents were either not
intending to change their approach to
mergers and acquisitions or were
planning to increase their involvement in
transactions.
Furthermore, only 3% of respondents
said they were considering changing their
bank over issues regarding deposit
security, suggesting that confidence in the
banking system had been restored.
On the other hand, many top Welsh
businesses remain concerned about the
availability of credit, with 37% of
respondents saying that they had seen a
decline in the availability of finance for
their companies. Some 50% had
experienced more stringent conditions
attached to their current facilities, while
42% of respondents had experienced
increased costs of finance.
While these responses are concerning, it
was interesting to note that 67% of
respondents do not believe that they will
experience any further decline in the
availability of finance during the next six
months.
The availability of finance will be critical
for Welsh businesses as we enter a
recessionary period."
ALISTAIR DAVIES
Director of regional
development services
"ALTHOUGH it may be more difficult to
secure funding from commercial sources,
the routes to grants and incentives are still
available and open for business. There are
a number of areas that can be looked at to
help identify new available pots of
funding, everything from research and
development, rationalisation and sale of a
business.
An economic downturn can provide an
opportunity to develop the next
generation of products and processes. It
could also mean that facilities need to be
rationalised and jobs lost. However, grants
can play a part to help retain activities,
even when there is an overall reduction in
headcount. When it comes to the sale of a
business, although it may not be possible
to secure grant aid towards the purchase
of the business, grants can support the
post-acquisition investment and
employment plans of the acquirer. Time
needs to be taken to carefully think
through the medium-term plans and
although a grant application is likely to be
processed and approved within six weeks,
time is required to carefully position the
project in advance.
However, grants aren't the answer in all
cases. For example, they won't fund
working capital requirements and won't
meet immediate and severe business cash
flow funding needs. They can however
provide an important contribution to help
good, strong companies invest for the
future."
PHIL WILLIAMS
Associate partner in
corporate tax
"AT a time when cash is king, an effective
tax strategy can play an important part in
managing cash flow through these
difficult times. Some 32% of businesses
surveyed had experienced an increase in
bad debts from customers in the last six
months, with most also experiencing a
deterioration in overall economic activity.
In order to maximise opportunity to
obtain reimbursement of tax and reduce
tax outgoings, tax strategy needs to be
aligned. This realignment of tax should
also take account of the other key areas
identified by the survey, that being the
reappraisal of finance and the need to
restructure activities in the current
economic climate.
Businesses will also need to ensure that
they remain compliant for all taxes, as
recent changes in HMRC powers covering
penalties for late payment and incorrect
returns can result in unwelcome surprises.
More encouragingly, the survey suggests
that a number of businesses are still
investing in capital assets and innovation.
Those entities should take full opportunity
of the generous tax reliefs available to
them, which not only offer the ability to
take enhanced or accelerated deductions
for this expenditure, but can also result in
cash being paid to them.
A carefully managed tax strategy will not
only help save costs in the short term, but
will also add value to businesses when the
market inevitably picks up, and will
continue to play an important part in
enabling business to achieve their long-
term growth aspirations." xz
SURVEY ANALYSIS
FROM DELOITTE'S
PARTNERS IN WALES
budgets and forecasts."
Although the general findings from the
survey show that Welsh businesses are a
step ahead and are doing all they can to
make their business stronger during the
credit crunch, the same cannot be said for
customers of the businesses surveyed.
Mr Antoniazzi said: "We are advising
businesses to review current systems,
looking specifically at working capital,
reducing debt and reviewing existing
management structures and business
plans. Businesses cannot afford to be
complacent" xz
Page 36: Deloitte's new initiative to
help Welsh businesses survive.

Page 1Page 2Page 3Page 4Page 5Page 6Page 7Page 8Page 9Page 10Page 11Page 12Page 13Page 14Page 15Page 16Page 17Page 18Page 19Page 20Page 21Page 22Page 23Page 24Page 25Page 26Page 27Page 28Page 29Page 30Page 31Page 32Page 33Page 34Page 35Page 36Page 37Page 38Page 39Page 40Page 41Page 42Page 43Page 44Page 45Page 46Page 47Page 48Page 49Page 50Page 51Page 52Page 53Page 54Page 55Page 56 Produced by PageSuite