Seven in ten finance directors and financial controllers of UK middle-market companies are optimistic about business growth prospects according to the Monitor research commissioned by UK private equity house Gresham.
Eighteen months ago, middle-market managers were expressing caution over what the future might hold. This time around there is a renewed confidence about the market in general and the prospects for business growth according to the Gresham Monitor.
The basis for this increased optimism among middle-market managers stems from higher turnover and profit. Improvements in financial health are shown by 57% of finance directors claiming a higher turnover than last year and 58% claiming higher profits. Around six out of ten companies are reporting increased earnings; the best results since the initial Gresham Monitor four years ago.
The growth in turnover and profits is reflected in company attitudes to staffing with 44% of finance directors expecting to take on extra staff this year and just 15% forecasting redundancies.
As for the main threats to business, finance directors see increased competition, rising costs, and staffing issues as the key concerns; over two-thirds of finance directors agree that increased competition is the biggest threat, 60% state rising costs while 49% comment that staffing issues would also be a threat.