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information gap does for record number of firms.(Brief article)

Information World Review

| October 02, 2006 | Caldwell, Tracey | COPYRIGHT 2006 Incisive Media, published with the permission of Incisive Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Tracey Caldwell

Information gap does for record number of firms

Tracey Caldwell

A big rise in the number of negative company announcements reveals a worrying information gap that could bring down many small and medium businesses, credit information company Equifax has warned.

The number of company profit warnings, redundancies and major restructurings hit 1,385 in the quarter to June 2006 -- the highest recorded figure since March 2003, according to accountancy firm KPMG.

Equifax external affairs director Neil Munroe said the high level of warnings should alert businesses of all sizes to be more vigilant in monitoring the credit ratings of customers and suppliers.

Most large companies should be identifying and reporting key risks as part of financial compliance activities.

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Source: HighBeam Research, information gap does for record number of firms.(Brief article)