This report draws on multiple data sources, including ThinCats’ proprietary credit model, PRISM, to assess how the UK’s mid-sized businesses performed during the covid pandemic. It also investigates their resilience to face a post-pandemic environment in which historically low insolvency rates – the result of unprecedented levels of government support – are certain to rise.
Small and mid-size enterprises (SMEs) are often viewed as a homogeneous group, accounting for around 2/3 of private sector employment and a similar proportion of GDP. In reality, the “S” and “M” of SME are two very distinct populations each representing around 1/3 of the workforce and total UK output. With only 1/10 the number of companies compared to smaller businesses, the financial health of the mid-sized sector is key to driving the UK’s economic growth.
By analysing the amount of borrowing, its impact on net cash levels and the current levels of insolvencies compared to recent years, the report assesses the relative resilience of mid-sized SMEs compared to smaller businesses and their prospects for navigating a UK and global economy in transition. We also dig deeper into the financial performance of different sectors within the mid-sized universe to identify those showing the most resilience.