Food and Beverage

Boosting the balance sheet in your F&B business

Trefor Griffith Trefor Griffith

There are two main areas where we see untapped potential for food and beverage businesses to boost their balance sheets – unlocking working capital within a business and unclaimed R&D tax relief.

There’s no denying that the food and beverage (F&B) sector faces significant emerging economic and regulatory uncertainty. The undetermined impact of Brexit and the developments in technology are playing an important role in this uncertainty, while changing consumer habits and tastes are driving rapid change and creating room for new players to disrupt the industry.

Working capital

We estimate there’s a further £7.3 billion of cash that F&B companies across the UK could access by improving their management of working capital. The benefits for businesses include cost reduction, better access to finance, and greater flexibility when investing for growth.

Our report shares the key findings from our analysis of almost 300 UK companies from across the food and beverage sector with revenues of £100 million and above, looking at the areas with the biggest opportunity for improvement.

Image 1 - UK F&B business

UK F&B business

Source: Grant Thornton UK LLP, UK Working Capital Study - 2017

R&D tax relief

While many food and beverage companies are making six – or even seven – figure savings through the UK government’s tax reliefs for R&D projects, not all business leaders are aware of the full scale of the opportunity available to them. The available tax relief can be worth up to 26% of the total project expenditure.

Whether it’s improving the understanding of what qualifies as R&D, or putting processes in place to ensure a systematic approach to applying for relief, we discuss how firms can take advantage of the current R&D tax regime.

Image 2 - R&D in numbers

R&D in numbers

Source: Grant Thornton UK LLP, Innovation in the Food and Beverage sector: Serving up tax savings, 2015

Read ‘Boosting the balance sheet in your food and beverage business’ [ 424 kb ] for case studies and checklists about how you can unlock cash in your business to prepare financially for the potential challenges and opportunities ahead.

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Related insights:

Boosting the balance sheet in your F&B business

Report on unlocking working capital and unclaimed R&D tax relief in food and beverage businesses
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