The results of the latest QCA Small & Mid-Cap Sentiment Index provide an insight into how small and mid-sized quoted companies have fared over the past year and how the view their prospects for the next year.
Survey conducted between 9 April and 5 May 2021 by YouGov
131 respondents: 103 from small and mid-cap UK quoted companies, 28 from advisory companies.
Respondents have been more optimistic than ever before about both the prospects of the UK economy and the prospects for their own businesses over the next year with the index at record high levels for the survey’s 10-year history.
- Overall 58% of respondents were optimistic about the UK economy’s prospects and 64% believed their own companies would see improvement performance.
- Company directors believe their turnover will increase by an average of 20% in the next year and their workforces will increase by an average of 9.6%.
- Both of these figures also represent record highs.
In terms of raising capital:
- Fewer businesses are considering doing so over the next 12 months. The proportion of businesses considering raising capital is at a 2 year low.
- There has also been a shift in companies preferences regarding how they would raise capital.
- Bank finance saw a greater increase in preference than any other type of finance and companies saw this as being significantly easier than was the case in Q42020.
Thank you to those QCA members that took part in the survey.
Past waves of this survey can be viewed here.