The next two years is a make or break period for companies, and the way
managers’ respond to the downturn will determine winners and losers for the next
decade, a Deloitte study has predicted.
Company performance is far more variable during recessions. The study
analysed the extent to which FTSE 100 companies annualised shareholder returns
were spread around the average. Variability was as high as 27% during a
recession but only 8% during an economic boom.
During the recession in the early 2000s, the variance of returns doubled from
14% in the 10 years leading up to the recession to 29% during the recession.
The study concluded that the spread of returns was so wide during recessions
is reinforced by decisions taken by managers during difficult periods. Managers
that focussed on securing financing, managing cash and controlling costs were
able to effectively shepherd their organisations out of danger.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK