When Monday morning came and I logged on to my home desk I was therefore feeling rather chipper.  Sadly the feeling didn't last long as I then read that:

• 13% of Scottish SMEs had decided to liquidate their assets in the last two weeks, compared to "only" 5.4% of SMEs in the rest of the UK (Source: Association of Chartered Certified Accountants and The Corporate Finance Network)

• the number of profit warnings issued by listed businesses headquartered in Scotland in the first half of 2020 increased by 45% year-on-year (Source: EY)

• Scotland is facing its worst unemployment crisis for decades with vacancies plummeting by 80 per cent, compared to a 62 per cent fall in the number of positions being advertised across the whole of the UK in the three months up to June, compared with the same quarter last year (Source: CV Library)

As many others have said in the last few months, we are currently living in exceptional times.  Nevertheless the margins between survival and disaster can sometimes be wafer thin and the old adage that he who hesitates is lost has never been more true.

The extent of the damage to the economy is currently being masked by the wide range of "life support" mechanisms being applied by the State.  Whether it comes in the form of the furlough scheme, tax deferral and rebate schemes, government backed loans or the suspension of the wrongful trading provisions, there is little doubt that large parts of the economy are in intensive care and being kept alive by a Government sponsored induced coma.

Faced with such circumstances there are usually two options: either recognise that the battle, and indeed the war, has been lost and that the elegant position is to withdraw knowing you have done everything possible to mitigate the pain suffered by yourself and others; or recognise that the position is not yet hopeless, roll your sleeves up and get on with doing what you can control, whilst hoping that with a fair following wind and the odd stroke of good luck you will emerge on the other side of the storm in better shape than your rivals and ready to sail on calmer waters.

Whichever path you choose to follow you cannot easily do it on your own.  Insolvency professionals are easily characterised by the general public as the undertakers of the corporate world.  We prefer to see ourselves more as health workers: engaging with patients who are suffering and trying our best to either make them better or alleviate the worst of their suffering.  And as with medical conditions, the earlier you seek help the more likely you are to have a satisfactory outcome - although sadly survival of everyone cannot be guaranteed.

If your business is suffering from financial distress at present it's important to realise first of all that you are very much in the majority and then to seek help.  At Morton Fraser we have a wealth of experience of dealing with distressed businesses and can share many success stories with you of successful outcomes over a number of years.  Please get in touch with us if you are feeling financially stressed and we will happily listen to your issues and work with you on a range of realistic options.  Our initial consultation is free of charge, and as is our wont we will be upfront, straight-talking and clear as to whether or not we can help.  We look forward to hearing from you and working with you.