We have now published the results of our tenth 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 sector's performance in 2013 and expectations for 2014. Some highlights from the results include:
- 92% of small and mid-cap quoted companies are optimistic about their own business prospects – up 9% on October 2013.
- 91% of small and mid-cap quoted companies are optimistic about prospects for the UK economy over the next 12 months – up 12% on October 2013
- 84% of small and mid-cap quoted companies expect sales to grow in the next 12 months, with the average expected growth in turnover at +14.35%
- 82% 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 +6.63%
- Small and mid-cap companies believe that bank finance and public equity have grown easier to obtain since October 2013, but listed debt issuance has remained the same and private equity is slightly more difficult.
- 78% and 82% of companies cite the general economic outlook and own company sales performance, respectively, as the factors currently driving confidence.
- Revenue and profitability is the most commonly cited challenge for small and mid-cap quoted companies over the next 12 months. Existing market growth is cited as the greatest opportunity.
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 us.
Our next QCA/BDO Small and Mid-Cap Sentiment Index will take place in April. So please help us make the voice of the small and mid-cap quoted company sector heard and participate next time too.