SCOTTISH firms across a wide range of sectors which rely on the North Sea oil and gas industry have been warned to take action to restructure their finances before problems arise.
Accountancy firm BDO declared yesterday that it believed, in light of the tumble in the price of crude and the consequent job losses and cost-cutting announced by major oil and gas developers, there was a need for all businesses involved directly or indirectly to "act immediately" in case the situation grew worse.
The accountancy firm highlights the degree to which the hospitality and leisure sector is dependent on the North Sea, and recent falls in hotel occupancy rates. It also flags up the potential impact of the more difficult North Sea climate on firms in the property and construction, and business services sectors.
BDO cited recent figures showing the North Sea currently supported an estimated 375,000 people, with 281,000 jobs with operators and the supply chain and a further 94,000 working in hospitality and leisure.
Bryan Jackson, business restructuring partner at BDO said: "We must hope that there is not a large-scale evacuation from Aberdeen and the surrounding area by the oil and gas developers but businesses should be prepared for the worst and ensure their financial position is stable if we are not to have a fallout in the months and years to come...
"Now it is important to examine in detail the operational costs, the long and short-term financial liabilities, and the ability of the business to survive in the event of a loss of income from a downturn in the North Sea oil and gas sector."
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