Withdrawal of Lending Facility
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.