FIFTH OF NORTH WEST BUSINESSES IN BETTER ELF THIS CHRISTMAS

The Lloyds Bank survey shows:

• 20% of businesses in the North West expect higher revenues this Christmas compared to last year
• 19% of region’s firms expect to see increased demand this seasonal period
• Over a quarter of businesses (28%) say they are completely ready for Christmas trading
• However, more than half of firms (55%) said they do not feel fully prepared for the festive trading period

Despite high inflation, rising energy prices and a tighter labour market, 20% of North West businesses expect this Christmas trading period to be merry and bright compared to last year, according to the latest insight from the Lloyds Bank Business Barometer.

Those predicting a bumper festive period cited increased demand (19%), while easing of trading was cited by 11% of the region’s firms as they felt less affected by Covid restrictions due to the Omicron variant last year. Those expecting a worse Christmas trading period said they were struggling with a decreased demand from their customer base (15%).

More than half of North West businesses surveyed said that Christmas was important for their future prospects (55%), with over a quarter of firms (28%) reporting to be Christmas ready. However, over half (55%) said they are not yet fully prepared for the festive period.

When asked what could help firms prepare more effectively, 30% said they wanted more support with rising costs, with 28% saying that access to better and more efficient supply chains would help. Skilled workers were also high on businesses’ wish list, with 26% saying access to more skilled staff would boost Christmas trading.

Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “Despite the ongoing economic pressures that North West businesses are facing, it’s encouraging to see that the festive season has brought confidence for many firms as we approach the business end of the year. Those relying on festive spikes in demand will welcome this year’s lack of restrictions which is set to encourage higher levels of footfall to high streets across the region.

“Despite this, many companies will also face challenges across their supply chains this festive period. In this environment, keeping a tight rein on margins and manging cashflow effectively will allow firms to take full advantage of increased demand, setting them in good stead for 2023.”

ENDS

Notes to editors

The Business Barometer’s measure of overall business confidence is the average of responses about how businesses regard the economic outlook and their own trading prospects.

• The overall ‘balance’ of opinion weighs up the percentage of firms that are positive in outlook against those that are negative. Responses are weighted to reflect the composition of the economy.
• The industrial sector in this report represents mainly manufacturing and construction; the consumer services sector comprises distribution and transport & communications; business & other services consists of financial & business services and the public sector.
• The Business Barometer results provide early signals about UK economic trends. The survey started in January 2002 and research is carried out monthly on behalf of Lloyds Bank by BVA BDRC.
• This survey was conducted with 1,200 companies – including 100 businesses in the North West of England – between 1^st-15^th November 2022.

About Lloyds Bank

• Lloyds Bank Commercial Banking provides comprehensive expert financial services for small businesses, mid-sized businesses, and multinational corporations.
• Maintaining a network of relationship teams across the UK, as well as internationally, Lloyds Bank Commercial Banking delivers the mix of local understanding and global expertise necessary to provide long-term support to its clients.
• Lloyds Bank Commercial Banking offers a broad range of finance beyond term lending and this spans import and export trade finance, structured and asset finance, securitisation facilities and capital market funding. Its product specialists provide bespoke financial services and solutions, including tailored cash management, international trade, treasury, and risk management services.

Support for SMEs

• Lloyds Banking Group is committed to helping businesses of all types and sizes, giving them the funding and support they need to grow at home and abroad. We have set out our pledges in our Helping Britain Prosper Plan.
• In 2020, we extended more than £18 billion in gross new lending to start-ups, SMEs, and Mid-Market UK businesses.
• To see the latest supporting businesses factsheet please visit: https://www.lloydsbankinggroup.com/globalassets/documents/media/media-kit/cb-factsheet/190220-cb-factsheet.pdf
  
• For more information on the Lloyds Bank Working Capital Index please visit: www.lloydsbank.com/workingcapitalindex
  

Financing businesses through the crisis

• Businesses can borrow from Lloyds Bank Commercial Banking using the normal process and we remain committed to helping our customers with their lending needs.
• For SMEs with a turnover above £3m, we have set up a fast track process to get fast credit approval.