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SME profits fall in 2010

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The profits of 24 per cent of small and medium enterprises (SMEs) fell by 50 per cent before tax in 2010, according to research from Baker Tilly & Company Watch.

SMEs with a turnover of £5 million to £25 million who have filed accounts with Company House provided the data for the research, which showed a worrying trend among this vital part of Britain’s economy.

With almost one in ten experiencing a 30 per cent downturn in their sales many SMEs will be finding it difficult to meet their immediate debt repayments.

The Federation of Small Businesses criticised Ed Miliband after the speech he made at the Labour party conference accusing him of not understanding the pressures on SMEs and how they create jobs.

Sarah Batchelor, partner at Baker Tilly Restructuring and Recovery LLP, said: “Seeking timely advice and implementing strategic safeguards is crucial to surviving the current tough economic conditions.”

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