Brexit doubt is stifling business, the results of the latest survey by award-winning East Midlands Chamber* have confirmed.

Companies are suffering cash flow problems and have lost confidence to invest in premises, plant and people.

According to the first Quarterly Economic Survey of 2019, cash flow concerns are at their worst since the end of the financial crisis in 2012.

Stockpiling in preparation for an unruly Brexit and businesses ‘stretching’ supplier’s payment schedules to shore up their own position as doubt and uncertainty continue were cited as two main drivers of worsening cash flow.

Scott Knowles, Chief Executive at the Chamber, said: “Unlike 2012, the figures here are not related to access to finance but, instead, are directly attributable to Brexit preparedness and the knock-on impact this is having on business.

“There is undoubtedly a level of stockpiling affecting cash flow, with an inevitable knock-on effect on payments as businesses seek to secure their own positions.

“Cash flow issues might also be part of the story behind decreased levels of investment intentions. While an understandable and rational reaction from business, this runs counter to UK Government’s plans to boost business investment and grow UK productivity.”

The Q1 QES found a net score of only 18% of firms reporting intentions to invest in training, the lowest score since immediately after the Brexit referendum in 2016.

Scott said: “A key difference between then and now are the drivers of that score. After the referendum, the key factors pulling down the overall score were concerned with confidence and investment, both of which took a short-term hit.

“In the latest survey, the main drivers behind the lower score are reported as actual sales, orders and cash flow for both domestic and overseas activity – making this less about sentiment and more about actual activity levels.”

The Q1 2019 QES results compound a slowdown seen in Q4 of 2018 and appear across all economic markers in the survey, resulting in a fall in the Chamber’s State of the Economy Index to its lowest level since the aftermath of the financial crash in 2012.

“The fact that these problems are of a political rather than structural nature does potentially offer some relief,” said Scott.

“In a scenario where we have a swift resolution to Brexit – or at least a clear and predictable path to a resolution – we could see cash flow and investment return to normal levels, with growing confidence following. However, if we experience continued uncertainty, this may exacerbate what is already a significant problem for SMEs.

“In worst case scenarios, long-term struggles with cash flow could start to see some organisations struggle with viability and some of their frustrations turn to genuine anguish as real-world impacts of political bickering start to bite,” he added.

The Car Store, a used car retailer, has opened on Eastside Road in Chesterfield.

The new custom-built dealership, is home to in excess of 350 used cars and employs 40 members of staff.

The store has a fresh look to support a new way of buying cars.   The store is home to interactive displays where customers in Chesterfield are able to search over 5,000 AA inspected cars. Browse in a relaxed environment and organise to have any car moved to the store within 96 hours. There is also a kids zone to keep the little ones entertained and coffee lounge to keep the big ones energised.

Sartaj Tamber Store Leader at Car Store Chesterfield, commented:

“I am thrilled to be looking after the store during such an exciting time, we are all excited about our new showroom and offering a new experience to the drivers of Chesterfield.

We have access to over 5,000 cars here in Chesterfield and the crew will be happy to help find the one for you.

Our aim is to make the car buying and selling journey one that is enjoyable and to take away the hassle. I invite you to come and see the new store and experience our new technology. I look forward to welcoming you soon.”

Joint managing partners have taken up position at Yorkshire and North Derbyshire’s leading accountancy firm.

Audit partner Lisa Leighton and corporate finance partner Hamish Morrison took the reins at BHP – which has offices in Chesterfield, Sheffield, Cleckheaton, Leeds,  and York – on 1 April 2019.

Both aged 45, Lisa began at BHP as a graduate in 1995 and Hamish joined BHP Corporate Finance as partner in 2012 with 20 years’ experience in the sector. Each will maintain responsibility for their current portfolio of clients.

Outgoing managing partner of 10 years, John Warner, will continue at the firm full-time as senior partner to manage his portfolio of clients.

At the start of his term as managing partner, John set out the firm’s first five-year strategy which, along with the subsequent five-year plan, achieved the aim of transforming BHP into the largest independent firm in Yorkshire.

From two offices and turnover of £8m in 2009, BHP now has five offices, turnover approaching £22m and is ranked number 35 of accounting firms in the UK.

John said: “BHP’s history is built on the ability to continuously adapt and stay at the forefront of the industry. It’s with this ethos that we continue to thrive today and I am fully confident in this next step for our business.

“My two highly qualified colleagues will inject a new wave of dynamism and drive to the firm, building on our strong foundations and leading us confidently into the next decade.”

Lisa and Hamish have been actively involved in the strategic and operational management of the business for several years and the hand-over process started in June 2018.

Providing partner-led advice on corporate finance deals and more general strategic areas, Hamish said: “This is a really exciting time for BHP. We continue to push forward – standing-out in the mid-tier market with significant initiatives to further add value, lead with technology, expand services and support staff and clients to reach their true potential.

“I very much look forward to BHP continuing to exceed client expectations well into the next decade.”

Lisa, who has extensive experience in auditing, business advice and corporate finance services for a wide range of organisations, said: “Like John, I’ve seen BHP grow and flourish over a number of years.

“BHP is all about people – our success comes from getting to know the people behind businesses and that is what I love. We support our clients and colleagues to develop, grow and be the best versions of themselves, and it is this culture that I want to take forward into the future.”

With more than 300 staff, including 31 partners, BHP was recently recognised in The Sunday Times Top 100 Best Companies to Work For and also for the Community Award at the Yorkshire Dealmakers Awards.