Where will your business be in 09?

Written on the 5 February 2009

 

Where will your business be in ‘09?
Aaron Lavell from WMS Accountants gives a snapshot of the sectors likely to perform and those that have been caught out by the credit crunch
 
The stragglers
1. Most retail businesses.
2. Any industries dependent on bank funding without very strong balance sheets – we are observing many ‘accidental developers’ and geared developers being placed into survival mode due to the shrinking number of financiers in the market and the conservative approach of those still in the game. Notwithstanding base rates have some down, the banks are using the cost of funding excuse to increase margins significantly.
3. Many financial advisory groups whose income is linked to funds under management – large reductions in 2009 and risk of clients flocking back to security of cash.
4. Consultants to industries above which are struggling – eg consultants to building industry unless well diversified client base of majors or beneficiary of government spending in infrastructure etc to stimulate the economy.
5. Importers as the Australian dollar has come off significantly in last 12 months.
6. Commercial property sector following market loss of appetite post Centro etc and weak outlook for commercial rents.
The performers
 1. Wellness-based businesses as consumers place a greater reliance on health.
2. ‘Green’ businesses with strong points of differentiation and low overheads.
3. Insolvency operators and corporate work out specialists – in difficult times, these skills are highly sought after in the market place.
4. Affordable aged care offerings – demographics have not changed and still a large demand for manufactured homes, retirement villages and supported living. Buyers will be more selective and quality expected to rise to top.
5. Those in a position to participate in the Federal Government’s infrastructure spending stimulus package – eg road builders, some property and all the associated industries.
6. Litigation lawyers as people seek to escape contractual obligations because of the change in economic circumstances.
7. ‘Vulture’ funds acquiring assets at distressed prices – not just property but trading businesses as well.
8. Those that will benefit from the flight to quality as companies seek out those best able to help them in the coming months. Second tier service providers with a reputation of quality will benefit from two directions - from larger clients deserting the high cost first tier firms without sacrificing the high end level of advice and assistance to which they have become accustomed and demand, and from clients of smaller firms that do not have the grunt and cannot provide quality advice to shepherd them through these troubled times.
9. Exporters as the Australian dollar has come off significantly in last 12 months.

Latest News

BABY STEPS FOR BELLAMY'S IN TURNAROUND

GREEN shoots are appearing in the Bellamy's Organic (ASX: BAL) business in the early days of its turnaround.

T...

LOSSES MOUNT AT SLATER AND GORDON

SLATER and Gordon's losses continue to mount following its disastrous entry in to the UK market. The compa...

NVC PLAYS A DIFFERENT GAME, AND WINS

AS its profits rise, National Veterinary Care's (ASX: NVL) focus on training over retail is proving to be a wi...

SUPERLOOP $2M LOSS DOES LITTLE TO KILL SLATTERY'S CONFIDENCE

BEVAN Slattery (pictured) is optimistic that Superloop's (ASX: SLC) financial position is promising, despite t...

Related News

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter