Most operators reporting cashflow worries
The data, based on responses from 250 senior-level business leaders in the hospitality and leisure sectors, showed a quarter (25%) of operators found raw materials topped the list of cost increases, while 40% and 34% respectively found Covid and Brexit had contributed to an overall rise in business costs.
Equals Money managing director Simon England said: “The survey findings reflect on the major financial obstacles UK businesses are facing in a world disrupted by seismic macroeconomic events like Covid, Brexit, and the cost-of-living crisis.
Managing cashflow
“These events are driving up costs for businesses across all areas, and leaders must have solutions in place to ensure maximum financial control, visibility, and security to maintain a healthy cashflow.”
The survey found more than two thirds (64%) of business leaders experiencing cash flow concerns had considered pivoting their business model to combat financial pressures, while 26% were worried they may need to close their doors for good.
England added: “Many businesses are yet to adopt specialised financial technologies and solutions, which could be the difference between success and struggle in the months ahead.
“Having the right tools in place to manage payments, expenses, budgets, payroll, as well as reinvesting in the finance function as a whole, will be vital for managing cashflow in the coming months.”
According to the payments firm’s data, the most common causes of cashflow problems for the sector included soaring energy prices (22%) and interest rates (19%), supply chain issues (19%), low customer demand (22%) and late payments from consumers or suppliers (19%).
Overcome adversity
However, the survey also revealed half of respondents expected to increase revenue (58%) and profits (52%) in 2022.
England said: “It's encouraging to see leisure and hospitality businesses are maintaining a positive outlook.
“With a proactive approach, leisure and hospitality business leaders can build resilience, get ahead of the competition, and ultimately overcome adversity to maintain a positive outlook throughout the rest of 2022.”
