Weightmans debt rises along with tech budget
Weightmans continues to spend more on technology even as the firm’s debt levels rise. The firm spent £1.3m last year on new technology, doing away with its practice management system among other upgrades.
This technology investment coincides with data revealing an increase in borrowings and lock-up by the firm. According to new 2016/17 financial management data, Weightmans’ total borrowings at year-end was £12.7m, rising 29 per cent from £9.8m. Meanwhile, lock-up rose from 100 days to 127 days, a 27 per cent increase.
Managing partner John Schorah attributed the firm’s borrowings increase to the longer lock-up, caused by a reluctance by clients to pay bills.
“It’s just a fact of life, it’s just taking longer to get paid,” commented Schorah. “Do I anticipate our total borrowings coming down? Not dramatically down but not dramatically up. Probably the level next year will be flat but we’ll also see top line growth, so it’ll shrink as a proportion probably to about 5 per cent of turnover.”