PracticePeople In PracticeAccountancy Age exclusive: FDs unfazed by Net losses

Accountancy Age exclusive: FDs unfazed by Net losses

One in four 'old economy' FDs would consider leaving their job for a dot.com start-up, despite dire warnings that the internet economic bubble has burst.

The findings, in this week’s Accountancy Age/Reed Big Question survey, follow a string of high profile collapses including internet retailer boo.com and online news service Netimperative in recent weeks.

Despite the setbacks 24% of more than 200 FDs questioned insisted they would still consider leaving for a good dot.com opportunity.

Jerry Garland, FD at game-centre operators, RAL, said: ‘Yes (I would consider moving to a dot.com start-up), dependent on the company and stability.’

Another FD who wished to remain anonymous, said: ‘(There is) no reason why they should be any more risky than any other organisation. If you do a good job it does not matter where you work’.

But 64% of FDs were sceptical over dot.coms and said they would not consider joining such a company.

‘The rewards would have to be substantial to justify the risk. Many dot.coms will fall by the wayside in the future’, said Ron Haley, FD of construction consultants Andrews, Kent & Stone.

Dot.com feelings have run high in recent weeks. A number of loss-making internet companies are expected to drop out of the FTSE 100 later this month and CBI director-general Digby Jones, a former KPMG partner, caused controversy last week by welcoming the recent correction in internet share values.

Liquidators are also seeking to recover as much as they can from the wreckage of the dot.com companies that have collapsed in recent weeks. KPMG has sold the systems architecture of collapsed boo.com for a rumoured figure of £250,000. The system is thought to have cost tens of millions of pounds to develop.

Announcements regarding the sale of the remaining elements of the business, including the boo.com brand and the website are expected soon. The company owed £25m to creditors.

Senior partner Simon Freakley at insolvency firm Kroll Buchler Phillips – who has been appointed as liquidator of Netimperative – said: ‘These companies are running into difficulties because of equity rather than debt. They are running out of cash before they can set up effective distribution channels.

‘From an insolvency point of view the problem for liquidators dealing with dot.coms is the lack of assets they can provide.’

Dot.com share victory

Related Articles

Is inefficiency stealing your time and money?

Accounting Firms Is inefficiency stealing your time and money?

3m Emma Smith, Managing Editor
CIMA elects new president

Institutes CIMA elects new president

3m Emma Smith, Managing Editor
Transparent currency trade: How to achieve costs visibility

Governance Transparent currency trade: How to achieve costs visibility

4m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

7m Emma Smith, Managing Editor
MHA MacIntyre Hudson advises on management buy-out

Accounting Firms MHA MacIntyre Hudson advises on management buy-out

8m Emma Smith, Managing Editor
Introduction to KPMG UK’s new leadership team

Accounting Firms Introduction to KPMG UK’s new leadership team

4m Emma Smith, Managing Editor
EY appoints head of UK Infrastructure Asset Intelligence practice

Accounting Firms EY appoints head of UK Infrastructure Asset Intelligence practice

6m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

7m Emma Smith, Managing Editor