Uncertainty looms for Gladstone businesses
ANALYSTS are cautioning Gladstone businesses to prepare for the worst-case scenario as the ongoing COVID-19 pandemic severely affects businesses across the country.
SV Partners analysts have compiled data which found that risk in Gladstone was steady as of early March, but now this outlook has completely changed in a matter of weeks.
At the time that Gladstone’s insolvency data was collated, the report dubbed the Commercial Risk Outlook, showed that 1.0 per cent of Gladstone businesses were at risk of insolvency immediately prior to the current economic volatility.
SV Partners Associate Director Frank O’Neill said in these unprecedented times, it was impossible to make accurate economic predictions.
“The speed in which treatments and vaccines are developed plays a major role when forecasting our economic outlook, so with those elements still uncertain, businesses should be seeking expert advice,” said Mr O’Neill.
Mr O’Neill said businesses need to be assessing their financial position right now as the risks associated with the crisis continues to develop.
“In situations like this, businesses must consider the variety of resources available to them to maintain their cash flow. These may include cash reserves, government support packages and determining extensions to debt where possible,” he said.
“The best thing that Gladstone businesses can do is to seek qualified professional advice in relation to their current position and future outlook.”
Mr O’Neill said local travel, recreation and hospitality businesses had been the most affected as a result of COVID-19.
Meanwhile essential services such as supermarkets, electrical goods and transportation businesses had a high demand.