Keith Steven's presentation to the Turnaround Management Association in Bristol 26th November 2012. The subject was what had happened in 2012 and what to expect in 2013

1. A Lifeline for Business
KSA Group
Past – Present and Future
Review, Refocus and Prepare
TMA @ Clarke Willmott, Bristol
29th November 2012

2. A Lifeline for Business
Agenda
• Quick introduction to KSA Group
• Review
– What have we seen happening in 2011-12?
• Refocus
– What does the future hold for 2013?
• Prepare
– What are our expectations for next year?
www.companyrescue.co.uk

3. A Lifeline for Business
KSA Group
• Quick introduction to KSA Group
• Web driven turnaround experts
– 2,000 pages or more of online guides
– Free phone advisory service
– Free initial strategy review, 6 regional managers
• Rescue more companies than anyone else in the UK
• Plus a full insolvency service but....
• So what!
www.companyrescue.co.uk

4. A Lifeline for Business
Do a deal!
• Well we believe that helping all stakeholders agree a DEAL
is the best solution
– For a viable business
– Where directors and members are determined
• Avoid insolvency solutions if possible or use a
• Company voluntary arrangement (CVA)
• Drive turnarounds with in house experts coupled with
sector specific turnaround people
• Most people want businesses to survive, we actively drive
that every day
www.companyrescue.co.uk

5. A Lifeline for Business
Review of 2011-12. Living Dead?
• Everywhere you look there are
• ZOMBIES
• Really? Is this a useful description or “journalese”
• Around 140-160 thousand such companies
– Breaching covenants, not paying loans back
– Low interest rates keeping them alive
• Or are people carefully looking after cash?
www.companyrescue.co.uk

6. A Lifeline for Business
Review of 2011 - Living Dead?
• Insolvency rates around a quarter of 1991-3 levels
• More work outs happening
• Banks serious turnaround players now
– 1,300 people, work for GRG (RBS)
– HSBC has SS growing rapidly
– Is this one of the reasons for low insolvency rates?
– Or is it pointless knocking companies down now
– Asset values will drop in a flat market?
• What about growth, where will working capital come
from if recovery occurs?

7. A Lifeline for Business
What about 2013?
• We are seeing a rise in activity, enquiry flow and
distress in late 12
• Autumn quiet but apparent now that cash is short
• Time to pay deals with HMRC failing
• Are we seeing a huge rise in fee income? Not yet!
• Decisions – management crap at making them
• What do we think will be major factors next year?
• RTI – Real Time Information for PAYE
• More Zombies
www.companyrescue.co.uk

8. A Lifeline for Business
What about 2013?
• RTI – Real Time Information for PAYE
– No more hiding the PAYE liabilities!
– No more time to pay deals whilst hiding cashflow holes?
• All businesses must file their PAYE information online
– As wages/ salaries are paid
– Make payments when? 19th still?
– By direct debit?
• Currently no monthly reporting, annual P35
• Increase in winding up petition activity by HMRC?
– We monitor WUP’s and volume sharply down right now
– Does HMRC have sufficient systems or people ?
www.companyrescue.co.uk

9. A Lifeline for Business
What does it mean for SMEs?
• More compliance, online reporting
• Will employers have cash ready on 19th following?
• Will there be a new BPSS approach to cushion?
– Business payments support service” – lots of new
• “TTPs” – time to pay deals
– We didn’t know we had to pay our taxes straight away!
– Will there be noise by FSB, CBI and etc?
– Will it be delayed due to popular press?
• VAT and PAYE will be paid online and on demand
www.companyrescue.co.uk

10. A Lifeline for Business
Corporate Insolvencies
• These are my thoughts
• Admins will not rise much as work outs continue
• SMEs will be chased harder by HMRC
– If they employ enough resource
– Winding up petitions should increase
• CVA numbers to rise; 1,000 for 1st time?
• Liquidations will rise
• Dissolutions will rise fast.
• £4.7bn owed to creditors by companies that just
stopped in 2011
www.companyrescue.co.uk

11. A Lifeline for Business
Corporate Insolvencies
• Zombies' will continue to survive
• Some insolvency firms will fail
• Turnaround becomes the norm, not burial
• What about 2014, well who knows!
www.companyrescue.co.uk

12. A Lifeline for Business
CVA Summary
• The company voluntary arrangement tool is
– Flexible
– Powerful
– Terminate contractual obligations, leases and costs
• Done properly allows a deep restructure of the
client’s business
• Not a panacea
• Change needed - management especially
• Preserves companies for you to work with
• NOT Zzzzombies, active restructuring !
www.companyrescue.co.uk

13. A Lifeline for Business
CVA Experts
• Spotting CVA cases
• Go to www.company-voluntary-arrangements.co.uk
• Please pass us any sightings!
• If you want support and training we can provide this
• KSA’s standard modus operandi
– Free meetings, assessment of options for clients
– Set a rescue strategy and then issue written
– SOLUTIONS REPORT for your struggling clients
• KSA is not a competitor- no tax, audit or accountancy

14. A Lifeline for Business
Summary
• Business is tough, growth minimal and many
companies have low working capital
• How best to restructure?
• CVA is the best recovery tool for so called
“zombie” companies, those threatened with
winding up and or in need of deep restructure!
• Any questions?
www.companyrescue.co.uk