Finance directors ‘ignoring’ business future

Over a third of finance directors (FDs) have not carried out a full financial check on their business during the last six months, it has been found. According to a management survey by BDO Stoy Hayward, despite 34 per cent citing concerns over new sources of finance and access to capital, over 30 per cent of FDs said they would not seek financial advice if their business came into difficulty.

Nearly 30 per cent of FDs admitted that they never assess how economic conditions will affect their business. Mike Prangley, business restructuring partner at the company, commented that a number of management teams appear to have their heads in the sand when it comes to the financial future. He explained: The safety net provided by the buoyancy of the markets in recent years is now starting to disappear and some organisations’ financial security is far less assured than previous years.

Previous research by BDO Stoy Hayward revealed that business optimism levels are the lowest in two years.