The Quoted Companies Alliance and BDO have launched the inaugural QCA/BDO Small and Mid-Cap Sentiment Index, powered by YouGovStone, which tracks quarterly the level of business and economic confidence of the small and mid-cap quoted company sector.
The research was carried out through an online survey of small and mid-cap quoted companies, their advisors and other market participants. Highlights from the first survey include:
- 70% of small and mid-cap quoted companies are pessimistic about prospects for the economy in the next 12 months, but 75% are positive about their own company’s performance over the same period.
- 42% of companies anticipate further fundraising in the coming year, with 52% likely to use public equity.
- 75% of companies think the amount of regulation impacting businesses will grow in the next 12 months, with 18% feeling it will increase significantly.
- 28% of companies are unsatisfied with a quotation on a London exchange, while 35% remain neutral about the value of a london listing.
- 6% of companies and advisors feel that the Government cares a great deal about small and mid-cap quoted companies.
- 60% of companies believe equity markets are hindering their company’s prospects.
- 72% of advisory firms are also downbeat about the economy, with 46% pessimistic about the prospects for small and mid-cap companies.
In the coming quarters we will be tracking the key components of business sentiment and focusing on specific issues that impact on the small and mid-cap public company sector and trying to bring a voice to this sector. We welcome feedback of whatever form and will be listening for issues that need to be tested in our survey and reported on. We do however need market participants to engage with the survey and make it as powerful as possible.
We urge you to participate and take part in the survey next quarter. Please email us if you'd like to receive email updates, register for the next survey or have any comments on our report.