Fanshawe-Lofts
The Year Ahead
A reflection by Antony Fanshawe - January 2008
We live in strange times. The world economy is predicted to grow its GDP by 5% in 2008 - good news. Yet there is the threat of recession in the US, storm clouds are brewing over the UK property market and we are in the midst of credit chaos. But the underlying prospects for the British economy nonetheless remain good.
We suspect that there will be some "bounce" in 2008. This will not be the boom and bust of the 90's, but we think customer attitudes are likely to harden and the world will become less accomodating for businesses which are highly geared or poorly managed. Cash will surely be king. Well-managed businesses with sound balance sheets will, as ever, prosper and opportunities will be there for the taking.
2007 has been business as usual. We have done 12 corporate finance deals (see the tombstones). We are seeing an increase in shareholders looking for an exit as Mr Brown/Darling (should that hybrid be Darn, Browling or perhaps Drown - you decide) tightens the tax legislation for capital gains and our pipeline looks good for 2008.
On the business recovery front we've continued to offer the quality advice we have become renowned for and we've seen a few themes emerge notably in the two key markets of leisure and construction - from hot tubs (times two) to health clubs and groundworks to mechanical and electrical engineering. Anyone for a hot tub in their conservatory - with newly dug footings of course?
Our personal insolvency business has seen the banks and credit card providers impose hurdle rates of return and cost reductions. People commited to doing their best by their creditors will become bankrupt with all that means for their careers - and their creditors (who are not just the banks and credit card providers ) will get little or no return. This is I think a shame, but we will soldier on regardless dealing with trading and more tricky personal insolvencies. We have had to get even more creative in finding solutions for our clients.
We have grown our solvent reconstruction and liquidation business this year taking on some substantial cases and building a skilled team along the way.
Then there was the high profile rescue of The Brook, a live music venue in Southampton out of a compulsory liquidation of a partnership. While we looked for a buyer we kept the business trading and the recovery team, although they were a little outside their comfort zone on the genre front, ran some 28 music gigs and almost daily press updates.
Maybe 2008 will be our big gig!
Antony Fanshawe
