Following the outbreak, and the stipulations laid down by the government, we anticipate both short term and medium term changes to the provision of services to our clients and want to give you an indication of how we intend to support you going forwards, as summarised below:
We have been provided with guidance from RICS.
The guidance clarifies that market activity is being impacted in many sectors. We consider that we can attach less weight to previous market evidence for comparison purposes, to inform opinions of value. Indeed, the current response to COVID-19 means that we are faced with an unprecedented set of circumstances on which to base a judgement.
Based on the guidance, for the time being, we are generally unable to provide valuation reports on company assets , although we will continue to monitor the situation. In the meantime, we are pleased to provide guidance based on the specific circumstances, for your compliance, that obtaining a valuation may not be appropriate and the asset realisations could be recorded as “uncertain” for the time being.
ASSET SECURING / REALISATIONS
We anticipate the effect on markets will a significant increase in the supply to market combined with a significant decrease in demand for most marketplaces.
During the lockdown period, our services have been reduced to reflect the latest guidelines. We are not attending any sites during the current lockdown period, nor our warehouses, for the safety of our staff, visitors and in the interest of the general population to support social distancing.
We are currently looking into increasing our storage capability with further warehousing. Our current assessment is that when the current movement restrictions are lifted, there may be a necessity to recover assets to our storage facility with an intention of releasing for sale when the market recover. Although this will incur greater costs, once markets are restored and the wheels start moving, greater realisations will be achieved.
Where insolvency clients are expecting realisations of assets to cover fees, regard must be made that realisations are uncertain and will be slower than previously archived in most asset classes, to obtain improved realisations.
Sales of any assets prematurely may result in reduced realisations.
ECOMMERCE DISCOUNT RETAILING
You may be aware that we have recently completed a significant upgrade of our eCommerce capabilities which were enhancing our efficiency in stock management, listing of products, multi-channel management, pricing, fulfilment of orders and use of space.
Once operations are fully restored, we will be placing a greater emphasis on the availability of suitable assets for sale to end users on existing marketplaces including Amazon and eBay, to effectively discount retail assets. As we have no cost price to meet, we are able to undercut any other sellers for the same item.
This is a strategy we have constantly evolved for more than 10 years, to reflect the needs of our clients to obtain the highest net realisations.
We believe this option will be most useful whilst markets recover as traders are expected to have an over supply and will reduce their prices.
We will be recruiting further staff after the lockdown to enhance this side of our operations from previous resources.
If you have any cases where you believe this is appropriate, we can discuss the suitability and costs.
Our office and warehouses are currently closed during the current lockdown. All directors are continuing to work from home with remote access to systems. Please call them on mobiles or email them directly.
We wish you good health and look forwards to the ‘restart’ that hopefully will leave society ultimately in a better, healthier place once this has all passed.
If there is anything we can do, although we are aware of our current restricted capabilities, then please pick up the phone to us.