What companies need to know about Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)

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Those in need of new business support who are interested in analysing and comparing profitability between companies and industries may do so via EBITDA, a measure of profits that eliminates the effects of financing and accounting decisions.

You will find in a company’s income statements its earnings, tax and interest figures, and in the notes, to operating profit or on the cash flow statement the depreciation and amortization figures. EBITDA can be calculated by first establishing the operating profit – also known as earnings before interest and tax (EBIT) – before adding back depreciation and amortization.

However, EBITDA as a non-GAAP measure allows greater discretion to be exercised with regard to what does or doesn’t figure in the calculation. It means that from one reporting period to another, some companies may alter the items included in their EBITDA calculation.

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Changes to business names rules

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Changes to the rules regarding business names came into effect on 31st January 2015. The changes were outlined after a government consultation, which asked for views on the existing rules relating to names of registered companies that are similar to those of other businesses and words and expressions that were previously deemed ‘sensitive’. Those embarking on new company formations may wish to register several variations on their name to stop their competitors taking advantage of the new rules. Continue reading

Consultation launched on possible ISDX Growth Market rule changes

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Companies with an interest in the CREST share registrar services of London Registrars may also read with interest the news of the launch of a market consultation by the London-based stock exchange, ICAP Securities & Derivatives Exchange (ISDX). It concerns potential changes to the ISDX Growth Market Rules for Issuers and the ISDX Corporate Adviser Handbook. Continue reading

Record-breaking number of start-ups hailed

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Company formations continued apace throughout 2014 as the economy picked up, as indicated by new figures released by StartUp Britain. They reveal that the UK saw the creation of a record number of new businesses over the past year, with 184,671 Greater London businesses being registered with Companies House.

That predictably made the capital the strongest performer on the ‘entrepreneurial map’ that was also released by the national enterprise campaign, which is run by the Centre for Entrepreneurs think tank. 581,173 businesses were registered across the country overall last year, compared to the previous record of 526,446 businesses the year before, and 2012’s 484,224 figure. Continue reading

Will the FCA’s move to reduce the clutter of quarterly reports be effective?

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While the recent Financial Conduct Authority (FCA) Policy Statement – Removing the Transparency Directive’s requirement to publish interim management statements will certainly be welcomed by many of the organisations using London Registrars business consultant services, it will not necessarily have much impact on its aim of reducing the clutter of quarterly reports. Continue reading

The Charity Commission promises to make charities more accountable

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New regulation requirements for charities has underlined the importance of hiring trusted business consultancy services to keep charities performing as compliantly as possible.

On 23rd October 2014, the Charity Commission, an independent regulator of charities in England and Wales, announced changes to the annual return process, which is intended to ensure that the public can give money to charities in confidence. Regulators reported that new questions to be added to the annual return will improve its ability to identify those charities in risk of financial failure, thereby making them more accountable to the public that supports them. Continue reading

Select tax-efficient dates for increased cash-flow

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New companies often experience steady growth during their first months in business, so it is important to properly assess the optimal accounting dates in order to make earnings as tax efficient as possible. Those benefitting from London Registrars’ outstanding support for new businesses can be guided through the most advantageous processes in order to secure the maximum benefit, and ensure their rapid growth and future success.

Incorporated businesses must adhere to a maximum period of twelve months for tax calculations. However, your company’s accounting period does not have to be one year exactly – you have the option of extending up to a period of 18 months, or reducing it as much as you require. Altering your accounting period can serve to extend your Corporation Tax date, which can be especially beneficial for new businesses from a tax point of view. Continue reading

UK Corporate Governance Code updated by Financial Reporting Council

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It will interest many of those firms benefitting from London Registrars’ business consultancy in London to learn that an updated version of the UK Corporate Governance Code was been issued by the Financial Reporting Council (FRC). The aim is to ensure that investors are significantly better informed on listed companies’ long-term health and the bar for risk management is also being raised. Continue reading