We have now published the results of our eleventh QCA/BDO Small and Mid-Cap Sentiment Index. While we continued to track key components of business sentiment this quarter, we also asked small and mid-cap quoted companies and their advisors for their views on the state of the current IPO Market.
Some highlights from the results include:
- 82% of small and mid-cap quoted companies are optimistic about prospects for the UK economy over the next 12 months but this is down 8% on January 2014.
- 88% of small and mid-cap quoted companies are optimistic about their own business prospects but this is down 4% on January 2014.
- 71% of small and mid-cap quoted companies expect to increase headcount in the next 12 months, with the average expected change in employment growth at +5.8% – down on January 2014 (+6.6%).
- Small and mid-cap quoted companies believe that private equity, listed debt issuance and bank finance have become more challenging to obtain since January 2014. However, public equity has grown marginally easier.
- 54% companies say they are satisfied with their quotation – up significantly on September 2011 when just 23% were satisfied.
- 58% of small and mid-cap quoted companies believe the equity markets are helping their development, compared to only 14% believing this in September 2011.
- 69% of small and mid-cap quoted companies believe that investor interest has increased in the past 6 months.
- 44% of small and mid-cap quoted companies believe that the current uptick in the IPO market is helping their ability to raise secondary finance, and the majority (81%) of advisors concur with this view.
Thank you to those that participated. We welcome your feedback on any aspects of the survey, the report, or relevant issues affecting the sector – please email Maria Gomes, Head of Policy.
Our next QCA/BDO Small and Mid-Cap Sentiment Index will take place in June. So please help us make the voice of the small and mid-cap quoted company sector heard and participate next time too.