The varied approach of Britain’s
large companies and small firms towards investment, despite
widespread confidence in the economic recovery is on the look for
future changes.
Corporate's investment hunger is
touching record highs the country. UK’s small-to-medium-sized
enterprises (SMEs) showed reluctance to invest.
Confidence is hiking as revenues are
boosting this year: micro businesses grew turnover by an average of
£30,000 to date, small firms brought an additional £80,000, and
medium-sized businesses hiked revenues by an average of £440,000.
SMEs should be bold with their capital
now, to capitalise on the upturn or risk “missing the boat”, a
survey report said. Around 47 percent of businesses leaders agreed
stating, "if SMEs don’t invest in growth in second half of
this year, they are on the way to losing out to competitors."
Cost-cutting is no longer a priority
for the 112 CFOs surveyed, which include 31 from FTSE 100 companies
and 37 from FTSE 250 firms. Just 26pc said that reducing costs was
their main focus, down from 34pc last year.
An economist head said, “There is a
sizeable minority of businesses, who are too cautious about the
recovery showing reluctance to make significant investments now.
These firms are falling behind their more ambitious peers.”
In contrast, larger businesses are
increasingly bullish about their investment intentions. According to
financial services firm Deloitte’s quarterly survey of chief
financial officers, 65 percent of CFOs quoted, "now is a good
time to take risk on their balance sheet," up from 45 percent
during the same period last year, the second highest level on record.
“UK corporates are moving from
balance sheet repair to growth and business spending is emerging as a
driver of the UK recovery,” said Ian Stewart, chief economist at
Deloitte.
A separate survey, released today, said
that the Aim market fetched a total of £2.4bn this year. This is the
highest sum in six years, indicating pre-recession confidence in
investors.
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