Withdrawal of Lending Facility

Posted by tr1pl3d PM | on Sun, 08/01/2012 - 21:30 1968 16 comments | report

Hello,

I have a catering business which has suffered from a 12% drop in GP from the previous year.

I was seeing a GP of 73% the previous year, but this year I show only 61%

Net profit for the previous year showed £61k, this year its showing as only £7k!!!!!!

The reasons behind the reduction are unclear, however I did lose £3.5k worth of frozen stock due to the freezer failing while I was closed. Insurance has paid out but this still does not change the GP percentage.

Also, one member of staff has been caught not entering sales into the till. I do not know how long this has been happening but the member of staff involved was with me for over 3 years, no reduction in GP has been noted until this last period.

My concern is that I have to provide my lending bank with annual accounts. One of the terms they put down when I borrowed the money for the business.

I am worried that they may withdraw the lending facility with the sudden drop in the GP and net profit.

Am I worrying too much or shall I start looking for a job!

Thanks for your help.

Regards,

Comments

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Facility letter and management accounts

UK Tax | Sun, 08/01/2012 - 22:49

Insurance payouts

mr. mischief | Mon, 09/01/2012 - 06:26

You state that the reasons

bernard michael | Mon, 09/01/2012 - 09:18

I originally trained for the hotel trade

Richard Willis | Mon, 09/01/2012 - 13:46

What are the other items on the accounts showing?

dbowleracca | Mon, 09/01/2012 - 14:00

Thanks very much for your

tr1pl3d | Tue, 10/01/2012 - 01:07

One last thought for you. Do

bernard michael | Tue, 10/01/2012 - 09:06

What about this one?

mr. mischief | Tue, 10/01/2012 - 10:03

Accounting system

DMGbus | Tue, 10/01/2012 - 13:39

Drop in GP

spencer | Wed, 11/01/2012 - 11:11

Apart from the bank

David Melia | Wed, 11/01/2012 - 11:30

Cash is your main concern

ukequus | Thu, 12/01/2012 - 10:28

The bank has asked for accounts.

tr1pl3d | Wed, 14/03/2012 - 13:20

Talk to an IP

UK Tax | Wed, 14/03/2012 - 13:38

Thanks for your advice.

tr1pl3d | Wed, 14/03/2012 - 15:12

Time to take stock of all of

bernard michael | Wed, 14/03/2012 - 15:29