With December 31 being one of the two most popular year end dates for UK business and the requirement to file accounts to Companies House within nine months many filings made by the end of this month will show declining profits and possible losses.
Accountants and credit insurers have said that if the accounts do not reflect more positive current trading then companies should consider releasing more up-to-date trading information.
Xavier Denecker, UK managing director of credit insurer Coface, which provides cover against non-payment by business customers, said: “If their situation is improving in 2010 then let them provide credible management accounts and our credit appetite will increase.”
Fabrice Desnos, chief executive of rival insurer Euler Hermes UK, said that insurers and credit rating agencies were keeping an eye out for the 2009 accounts as part of their extensive monitoring of private companies’ trading performance.
“Every piece of information you publish is important. If you think it’s going to be detrimental you need a strategy to proactively explain that it’s better than it looks in your numbers.”
Photos courtesy of iStockphoto, © Damir Cudic, Image #6001673