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Thames Valley business prospects improve as two thirds witness growth
measuring results business barometer
The Thames Valley is bucking the trend as almost two thirds of businesses witness growth. But ailing confidence in the UK economy continues to cast a dark shadow, according to the inaugural Thames Valley Business Barometer published by accountancy and business advisory firm BDO LLP and the Twenties Club
The Business Barometer, which surveyed more than 120 business leaders in the Thames Valley, reveals that new business pipelines have increased for the majority of businesses (64%) in the past three months. More than half witnessed an increase in turnover in the last quarter, and 61% predict further growth in the next quarter (rising to 67% for SMEs within the sample).
Profits are up too for 47% of respondents but companies are still under pressure to deliver more for less and, despite optimistic order books and outputs, approximately half
report no overall improvement in general economic conditions.
Looking forward, investment intentions are strong. Winning new business, staff development and advancements in technology are key investment areas for the region’s business leaders; with almost half looking to increase marketing spend in the next three months and a third investing in training and development and technology.
Investing in new
fleet and transport and property is not on the agenda in the short-term, with just 3% and 8% respectively planning to invest in these areas.
Alongside the need for investment in education and skills across the region, the majority of local businesses see the availability of finance as the major challenge for businesses in the Thames Valley, with just one in 10 saying it has become easier in the last quarter.
Julian Frost, partner and head of BDO in the Thames Valley, commented: “The Thames Valley is bucking the trend in terms of growth, business performance and investment.
It has been a
solid quarter of financial progress; one that will be welcomed by businesses across the region. It is understandable that cautious optimism prevails, particularly with the ongoing turbulence in the eurozone, but companies seem to be on a much firmer footing and the challenge is now to create a springboard for growth into the next quarter and beyond.”
The Barometer’s report includes a number of interviews with Thames Valley businesses, including Ultima Business Solutions, GCS Recruitment, SEGRO, Achilles Group and Grundon Waste Management. The companies shared their perspectives on their own performance, the key challenges they face and the prospects for the Thames Valley region.
Paula Elliott, managing director, C8 Consulting, commented: “The Thames Valley Business Barometer provides a compelling street-level view of business sentiment, helping to inform decisions on growth, investment and employment in the region. There are some fantastic stories of strong growth, particularly within the mid-market, demonstrating the resilience and entrepreneurial spirit of our region’s businesses.”
BDO’s Julian Frost concluded: “Our second Barometer will re-open on
www.businessmag.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – JULY/AUGUST 2012
Julian Frost
July 2, 2012 for one month and we encourage all companies in the region to get involved.”
The full results of the survey can be accessed via the BDO LLP website (
www.bdo.uk.com/press/ bdo-thames-valley-business- barometer-launch) and also via C8 Consulting’s website, the founders and inspiration behind The Twenties Club (www.
c8consulting.co.uk/Twentiesclub). The second Barometer will also be accessed via these links, from July 2, 2012 for one month.
For extracts from the survey see page 12.
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