Business Leaders Share Best Practice on the Working Capital Cycle
Around 200 business leaders and professionals from across the UK attended a conference at The Midland Hotel, Manchester, to debate and share best practice on the working capital cycle. The conference was sponsored by Lloyds TSB Corporate Markets and organised by The Association of Corporate Treasurers (ACT). In the current economic climate, companies are concerned about having sufficient cash in their working capital to manage and grow their businesses effectively. These concerns are exaggerated further by continued high energy and raw material costs – and the reduced exchange rate of the pound against other major currencies. For businesses with long capital cycles, such as those that import goods and materials and those that have seasonal fluctuations in revenue, it is even more vital to have a solid working capital plan in place.
Shara Galvin, head of trade transaction services, Lloyds TSB Corporate Markets, who spoke at the seminar, said: “We would recommend corporates go back to basics. Firstly, they need to ensure that they have a full understanding of their business. Within this, they should take a holistic view of their integrated physical and financial supply chains to identify and highlight any bottlenecks; then discuss the issues and potential remedies with their suppliers and supply chain partners.”