RE: Hmrc debt27 Apr 2024 10:16
Working capital requirements will be large for the business, payment terms likely to be pushed to 60 or even 90 days. While the price increase is essential it'll take some time to materialise.
I'm worried about the cash flow here, are they paying their suppliers on time if not then it's pro forma invoice and will further distress the situation.
The debt in general is massive, Foundries tend to be low profit margin companies in the UK, the competition from east Europe and India is hammering nails in the coffin quickly. The lessons learned from covid about having a western supply chain are quickly being forgotten.
Uk power prices are uncompetitive coupled with huge renewable obligations, wages are high and the uk supply chain is very unpatriotic with little regard to its ever shrinking capacity.