How's people coping financially at the moment

[fossyant]

The whole thing is very scary when you realise how much most companies are hand to mouth, never mind individuals. The construction company I worked for before going back into HE would have gone bump immediately (well it did within a year of me leaving). Our Uni is cash rich (for new building master plans) but it's devastating looking at the loss, never mind the Uni next door that will lose 5x what we will next year and they don't have the cash as it's borrowed.

 

[Slick]

The whole thing is very scary when you realise how much most companies are hand to mouth, never mind individuals. The construction company I worked for before going back into HE would have gone bump immediately (well it did within a year of me leaving). Our Uni is cash rich (for new building master plans) but it's devastating looking at the loss, never mind the Uni next door that will lose 5x what we will next year and they don't have the cash as it's borrowed.

That hand to mouth existence is probably a tax thing, money being siphoned off before the tax man gets it.

 

[fossyant]

That hand to mouth existence is probably a tax thing, money being siphoned off before the tax man gets it.

Not in construction. No physical cash considering turnover. Tax is not cash.

 

[Drago]

The whole shareholder business model is going to take a hammering. One thing taking a profit to feed yourself, but making enough to feed hordes of shareholders is going to be a whole different ballgame. A lot of businesses have been hand to moutn for some time in that regard, and while many may be viable in their own right they're not going to be able to give an annual return like they used to. The era of non contributing personnel taking a slice of the annual cream for nothing has just faltered for the first time in modern history.

 

[Slick]

Not in construction. No physical cash considering turnover. Tax is not cash.

Your kidding, construction is a perfect example of it.

 

[fossyant]

Your kidding, construction is a perfect example of it.

Have you actually worked in a construction company, and managed the cash. I have (Financial Controller), I'm talking about the folkes that do the work, there is no spare cash. I drove 60 miles to pick up a £300k cheque from United Utilities and then too the bloody bank... we were a Tier 1 supplier to UU... 😢

 

[Slick]

Have you actually worked in a construction company, and managed the cash. I have (Financial Controller), I'm talking about the folkes that do the work, there is no spare cash. I drove 60 miles to pick up a £300k cheque from United Utilities and then too the bloody bank... we were a Tier 1 supplier to UU... 😢

All my life apart from 6 years in oil and gas with 15 years as company director.

 

[fossyant]

All my life apart from 6 years in oil and gas with 15 years as company director.

Well you had more cash than we did as a Utility company, and any company my wife worked for. We were a £300m turn over privately owned Utility sub contractor (that's how UU managed it). Skint. Left the industry 15 years ago.

 

[Slick]

Well you had more cash than we did as a Utility company, and any company my wife worked for. We were a £300m turn over privately owned Utility sub contractor (that's how UU managed it). Skint. Left the industry 15 years ago.

A friend of mine ran a similar company to me although he bankrolled it through bigger and bigger houses as collateral until finally they took the lot of him and he ended back in the house he started in except this time it needed renovating. He did pay out everyone that was due but he was left with 200 quid. I did it very different, probably really old fashioned with no cash injection from outsiders despite lots of advice about using other people's money. When I shut the doors after paying everyone I was looked after and 6 years on the company is still in existence for tax purposes and will be for some time.

 

[Slick]

Well you had more cash than we did as a Utility company, and any company my wife worked for. We were a £300m turn over privately owned Utility sub contractor (that's how UU managed it). Skint. Left the industry 15 years ago.

I lived by the old adage, turnovers vanity and profit is sanity.

 

[Ridgeway]

Initially thought the reduction was around 20-30% but looks more like a 50% overall cut this year, which isn't sustainable for us. Will have to be creative, glad a kept that sawn off

Already started working an alternative incomes but it will take some time to get any cash out of that, it's going to be a tough 12 months

Looking into some life changing ideas, early days and lots of planning needed but as a family we are "cash junkies" and that has to change.

 

[NorthernDave]

Lucky enough to be working from home on normal pay.
Filled the car up on the way home about two hours before Boris announced the lockdown and the gauge has barely moved since.
In fact the car app shows that I used 99p worth of petrol in April, travelling just 7 miles. That's a heck of a saving.
Unfortunately I'm still paying for parking at work, despite wfh. It's contract parking and while we were given the chance of cancelling it we were told we'd have to reapply when (if?) we return to the office - given parking was oversubscribed with a waiting list for a space, most of us have decided to keep it going rather than risk losing it.
Shopping is a bit more expensive too, using local shops / the co-op rather than the big supermarkets, but I'm in a better financial position than a lot of people so no complaints.

 

[Ridgeway]

I lived by the old adage, turnovers vanity and profit is sanity.

You missed the 3rd and most important one "cash is reality"

 

[fossyant]

I lived by the old adage, turnovers vanity and profit is sanity.

Cash was King and is TBH. I shall say no more - done enough time dismembering company accounts to prove they are worth nothing.

 

[Slick]

You missed the 3rd and most important one "cash is reality"

That's the profit.