When I think of what the UK business landscape is going to look like for the next 18 months, two AIM listed firms come to mind. I’m talking about Manolete Partners (LSE:MANO) and Begbies Traynor (LSE:BEG). I reckon these insolvency specialists will see a huge uptick in cases. Both are the kinds of stocks best picked up on short-term weakness, in my view.
Even with the gov.uk support for small businesses it would be foolish to suspect that thousands of companies will not go under in the current climate. According to a 15 April study by the Corporate Finance Network (CFN), 1 in 10 SMEs have already had to close permanently and liquidate their assets.
“If the lockdown lasts three months or more,” write CFN, “the situation looks even more dire, with accountants in the network reporting that 31% will have to close down their business by June.”