Latest news with #BFS
Yahoo
a day ago
- Business
- Yahoo
Leasing lays the foundation as UK construction sector feels the strain
The UK construction sector is facing a perfect financial storm. In March 2025, more construction firms collapsed than in any other month since July last year. A total of 377 construction businesses became insolvent, according to the Insolvency Service, up from 368 in February. The vast majority were specialist subcontractors, including 87 electrical and plumbing firms and 71 building completion and finishing contractors. These figures come against a broader trend of financial stress across the UK economy. Overall, there were 2,238 company insolvencies in England and Wales in May 2025, up 8% from April and 15% from the same month a year ago. The construction sector was the worst affected, accounting for 17% of all insolvencies over the past 12 months. While the sector remains vital to economic growth and housing targets, small and medium-sized enterprises (SMEs) are increasingly unable to weather the squeeze. Data from Bibby Financial Services' (BFS) Q1 SME Confidence Tracker paints a stark picture: 72% of construction SMEs cite rising material costs as a major drag on profitability. At the same time, nearly a third (29%) say they don't have sufficient cashflow to operate effectively, much higher than in other sectors such as transport (6%) or wholesale (12%). BFS Construction Finance Report (Under Embargo)Download The result? Mounting bad debt and tightening margins, pushing more SMEs toward insolvency. Despite the sector's growing pain, many small firms remain optimistic. According to BFS, 67% of construction SMEs expect sales to rise in the coming year, up from 57% a year ago. But this optimism is tempered by doubt: 60% of firms believe that the Government's Industrial Strategy, anchored by £100 billion in capital commitments and a pledge to build 1.5 million homes by 2030, will disproportionately benefit large main contractors. The concern is that while large firms may have the resources and leverage to bid on and manage major infrastructure and housing projects, smaller subcontractors and regional builders are being left on the sidelines. And without targeted support, the risk is that the Industrial Strategy could deepen the divide between large and small players, rather than level the playing field. Contractual complexity is a persistent barrier for smaller construction firms. BFS's research found that nearly half (48%) of SMEs find contracts difficult to understand, rising to 56% among the smallest firms (1–9 employees). Even more worryingly, 58% of the smallest firms feel they must accept terms as-is, for fear of losing business altogether. These firms often operate at the end of the payment chain, leaving them vulnerable to delayed payments, unfavourable terms, and bad debt, all of which exacerbate existing cashflow issues. Limited bargaining power and a lack of legal or administrative support to challenge complex contracts only deepen the financial risk. As costs and risks rise, construction SMEs are finding it increasingly difficult to secure external finance. BFS reports that 51% of firms say access to finance has worsened over the past six months, more than in any other sector. The most common reasons for seeking finance include investment in growth (39%) and covering day-to-day operations (32%), but for many, traditional routes to funding are drying up. This leaves a crucial gap, one that asset finance and leasing may be increasingly well placed to fill. Despite broader financial pressures, equipment and plant finance—a key construction indicator—shows resilience, according to figures from the Finance & Leasing Association (FLA). While plant and machinery finance fell 5% year-on-year in April 2025, it rose by 1% over the past three months, and remained up 1% over the full 12 months. These figures suggest that the April dip may reflect a seasonal slowdown or temporary pause, rather than a long-term contraction. For construction firms facing restricted access to traditional lending, leasing and asset finance offer a vital alternative, enabling investment in essential equipment without overstretching limited cash reserves. Asset finance new business fell by 7% in April 2025 The construction sector is far from short on potential. Confidence in future demand remains high, and Government infrastructure targets offer a substantial pipeline of opportunity. But without targeted action to improve access to finance, simplify contracts, and ensure SMEs benefit from public investment, the sector risks becoming increasingly dominated by a few large players—at the expense of thousands of smaller firms that make up its backbone. As BFS Group Managing Director Jonathan Andrew puts it: 'The Government's commitment to invest in the construction sector may well explain increasing optimism amongst business leaders, however it's critical that small firms are not left on the sidelines... Improving access to finance will be a critical lever to give SMEs the boost they need to invest, innovate and grow.' The future of UK construction depends not only on ambitious targets but on ensuring that the smallest firms can build, compete, and survive. While the UK construction sector faces rising insolvencies, bad debt, and a squeeze on working capital, equipment finance is proving to be a vital support system. Despite a short-term dip, recent FLA figures suggest continued resilience in plant and machinery finance—pointing to steady demand for flexible funding solutions. As traditional lending tightens, asset finance can help construction SMEs bridge funding gaps, manage risk, and seize growth opportunities aligned with the Government's infrastructure plans. For finance providers, the message is clear: supporting this sector isn't just about survival—it's about enabling recovery and long-term resilience. "Leasing lays the foundation as UK construction sector feels the strain" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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Yahoo
a day ago
- Business
- Yahoo
UK construction SMEs struggle to access finance: BFS Report
Despite growing confidence in future sales, UK construction SMEs are facing significant financial headwinds, with access to external finance tightening just as cost pressures and bad debt levels rise, according to new research from Bibby Financial Services (BFS). The report, based on BFS's Q1 2025 SME Confidence Tracker, reveals a mixed picture for small and medium-sized firms in the construction sector. While 67% of construction SMEs expect sales to rise over the next 12 months — up from 57% a year ago — more than half (51%) say it has become harder to secure external finance, the highest proportion of any sector surveyed. This access-to-finance gap comes at a time when construction SMEs are dealing with persistently high costs for materials and labour, complex contract terms, and a growing burden of bad debt. BFS data shows these firms have written off an average of over £23,000 in the past year, and nearly one-third (29%) report insufficient cashflow to manage day-to-day operations. BFS Construction Finance ReportDownload The impact of elevated raw material prices, particularly timber and concrete, has been especially acute, with 72% of SMEs saying these pressures are directly eroding profitability. Small firms, often less able to hedge or absorb cost spikes, are also more exposed to supply chain disruption and inflation than their larger counterparts. Insolvency rates are rising as a result. Nearly one in five (18.1%) of all business insolvencies in England and Wales in March were from the construction sector, according to data from the Building Cost Information Service (BCIS). Despite the Government's Industrial Strategy pledging £100 billion in capital investment and a commitment to build 1.5 million homes over the next five years, smaller construction firms are sceptical. Four in ten (40%) doubt the Government's ability to support them effectively, with many concerned that the lion's share of benefits will flow to large main contractors. The situation is compounded by increasingly difficult access to finance. While the Government has identified improving SME finance as a key policy goal, BFS's research suggests the reality on the ground is diverging. Only 32% of construction SMEs say they use finance for day-to-day operations, but for many, that finance is now harder to obtain. 'The Government's commitment to invest in the construction sector may explain rising optimism,' said Derek Ryan, UK Managing Director at BFS. 'However, inflation, rising costs and restricted access to finance are squeezing margins and exposing small firms to greater insolvency risk. To unlock the full potential of the construction pipeline, SMEs must be given equitable access to opportunities and funding.' BFS's report also points to contractual dynamics that disproportionately impact smaller firms. Nearly half (48%) of construction SMEs find contracts difficult to understand, a figure that climbs to 56% among micro-firms with fewer than 10 employees. These businesses are often locked into rigid payment terms and report limited ability to negotiate, only 26% say they can influence contract terms, compared to 58% of larger small firms (10–50 employees). The Federation of Master Builders echoed the call for stronger SME support, warning that unless access to finance, skills and planning is improved, the sector's smallest firms will continue to face a systemic disadvantage. 'Small builders are showing remarkable resilience and optimism, but they face mounting challenges,' said Brian Berry, Chief Executive of the FMB. 'Access to finance is harder than ever, and planning policy too often favours large developers. If the Government wants to build more homes and boost local economies, it must ensure that SMEs aren't left behind.' As construction continues to be a cornerstone of the UK's economic recovery strategy, the message from industry and finance alike is clear: if SMEs are to help deliver the Government's growth agenda, greater financial accessibility and structural reforms must be prioritised. "UK construction SMEs struggle to access finance: BFS Report" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
UK construction SMEs struggle to access finance: BFS Report
Despite growing confidence in future sales, UK construction SMEs are facing significant financial headwinds, with access to external finance tightening just as cost pressures and bad debt levels rise, according to new research from Bibby Financial Services (BFS). The report, based on BFS's Q1 2025 SME Confidence Tracker, reveals a mixed picture for small and medium-sized firms in the construction sector. While 67% of construction SMEs expect sales to rise over the next 12 months — up from 57% a year ago — more than half (51%) say it has become harder to secure external finance, the highest proportion of any sector surveyed. This access-to-finance gap comes at a time when construction SMEs are dealing with persistently high costs for materials and labour, complex contract terms, and a growing burden of bad debt. BFS data shows these firms have written off an average of over £23,000 in the past year, and nearly one-third (29%) report insufficient cashflow to manage day-to-day operations. BFS Construction Finance ReportDownload The impact of elevated raw material prices, particularly timber and concrete, has been especially acute, with 72% of SMEs saying these pressures are directly eroding profitability. Small firms, often less able to hedge or absorb cost spikes, are also more exposed to supply chain disruption and inflation than their larger counterparts. Insolvency rates are rising as a result. Nearly one in five (18.1%) of all business insolvencies in England and Wales in March were from the construction sector, according to data from the Building Cost Information Service (BCIS). Despite the Government's Industrial Strategy pledging £100 billion in capital investment and a commitment to build 1.5 million homes over the next five years, smaller construction firms are sceptical. Four in ten (40%) doubt the Government's ability to support them effectively, with many concerned that the lion's share of benefits will flow to large main contractors. The situation is compounded by increasingly difficult access to finance. While the Government has identified improving SME finance as a key policy goal, BFS's research suggests the reality on the ground is diverging. Only 32% of construction SMEs say they use finance for day-to-day operations, but for many, that finance is now harder to obtain. 'The Government's commitment to invest in the construction sector may explain rising optimism,' said Derek Ryan, UK Managing Director at BFS. 'However, inflation, rising costs and restricted access to finance are squeezing margins and exposing small firms to greater insolvency risk. To unlock the full potential of the construction pipeline, SMEs must be given equitable access to opportunities and funding.' BFS's report also points to contractual dynamics that disproportionately impact smaller firms. Nearly half (48%) of construction SMEs find contracts difficult to understand, a figure that climbs to 56% among micro-firms with fewer than 10 employees. These businesses are often locked into rigid payment terms and report limited ability to negotiate, only 26% say they can influence contract terms, compared to 58% of larger small firms (10–50 employees). The Federation of Master Builders echoed the call for stronger SME support, warning that unless access to finance, skills and planning is improved, the sector's smallest firms will continue to face a systemic disadvantage. 'Small builders are showing remarkable resilience and optimism, but they face mounting challenges,' said Brian Berry, Chief Executive of the FMB. 'Access to finance is harder than ever, and planning policy too often favours large developers. If the Government wants to build more homes and boost local economies, it must ensure that SMEs aren't left behind.' As construction continues to be a cornerstone of the UK's economic recovery strategy, the message from industry and finance alike is clear: if SMEs are to help deliver the Government's growth agenda, greater financial accessibility and structural reforms must be prioritised. "UK construction SMEs struggle to access finance: BFS Report" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
06-06-2025
- Business
- Business Standard
Bajaj Holdings & Investment sells 0.65% stake in Bajaj Finserv
For a consideration of Rs 2,002.21 crBajaj Holdings & Investment (BHIL) has sold 1.04 crore equity shares of Bajaj Finserv (BFS), an associate for an aggregate consideration of Rs. 2,002.21 crore through block deal today. It is approx. 0.65% of paid up capital of BFS. After this block deal, BFS continues to be an associate of by Capital Market - Live News
Yahoo
04-06-2025
- Business
- Yahoo
SCbio Showcases South Carolina's Life Sciences Surge at Annual BIO Convention in Boston
Life Sciences industry generates an impressive $25 billion in annual economic impact for the Palmetto State. South Carolina emerges as a Southeastern powerhouse in biomanufacturing, digital health, and biotech specialties. More than 16 companies and organizations with deep roots in South Carolina will join SCbio at BIO 2025. GREENVILLE, S.C., June 4, 2025 /PRNewswire/ -- Led by SCbio, South Carolina's unifying life sciences leader, the state's rapidly-growing life sciences industry will be on full display at BIO 2025, the annual international convention hosted by Biotechnology Innovation Organization June 16-19 in Boston. SCbio, and more than 16 life sciences companies and organizations with roots in the Palmetto State, will showcase South Carolina's rapidly growing life sciences ecosystem and highlight the state's commitment to innovation, collaboration, and economic development in the biotech and medtech sectors. As one of the fastest-growing life sciences hubs in the Southeast, South Carolina is home to more than 1,000 life sciences companies, employing over 87,000 professionals. SCbio's presence at BIO 2025 will serve as a platform to engage with global industry leaders, promote investment opportunities, and spotlight the talent, infrastructure, and partnerships driving life sciences growth across South Carolina. With an annual economic impact of $25.7 billion, life sciences is the fastest growing business segment in South Carolina. Since 2017, South Carolina life science jobs have grown two times the average of other southeastern states. In 2024, the South Carolina Department of Commerce recognized the life sciences as a top three business priority for economic growth. As such, the state is committed to fueling innovation, driving growth, and amplifying its position as a burgeoning leader in the advancement of life and science in unison. "This is an incredible opportunity to tell the South Carolina story on a global stage," said James Chappell, President and CEO of SCbio. "From cutting-edge research and biomanufacturing to our workforce pipeline and pro-business climate, South Carolina has become a destination for life sciences companies looking to grow, innovate and lead the next era of health and science." SCbio will sponsor the South Carolina pavilion at booth #447 and host events, meetings, and networking opportunities throughout the convention to foster strategic partnerships and promote the state's expanding capabilities in pharmaceuticals, biotechnology, medical devices and digital health. The South Carolina delegation at BIO will include multiple companies and organizations from South Carolina, including BFS manufacturer Ritedose, economic development partners such as the South Carolina Department of Commerce, I-77 Alliance and others. To schedule a meeting with the SCbio team at BIO 2025, please visit or contact Connor Watkins, director of marketing, at cwatkins@ About SCbio SCbio is the definitive, unifying leader in South Carolina's life sciences sector, fostering authentic collaboration and innovation across academia, startups, government and established enterprises. As a member-driven economic development organization, SCbio represents more than 1,000 organizations employing more than 87,000 professionals. Our members are unified by a mission to positively impact humanity through science across the ecosystem of advanced and specialty manufacturing; digital health and the data frontier; and cutting-edge health specializations. For additional information about SCbio and the life sciences industry, or to become a member, visit View original content to download multimedia: SOURCE SCbio Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
