We have now published the results of our third QCA/BDO Small and Mid-Cap Sentiment Index that show that small and mid-cap quoted companies have become increasingly confident despite the double-dip recession.
The survey revealed that optimism in the UK economy had risen from 40.9 in January to 47.3 in April this year, although the scores remain negative (less than 50). Confidence in companies' individual prospects for the next 12 months has also increased from 62.4 in January to 66.1 in March.
While we tracked key components of business sentiment this quarter, we also asked the sector for its views on corporate governance.
Some highlights from the results include:
- 26% of small and mid-cap quoted companies are optimistic about prospects for the economy in the next 12 months.
- 77% of companies expect sales to grow in the next 12 months, with the average expected growth in turnover put at +13.2%.
- 55% of companies believe they will need to take on more employees in the coming 12 months, with the average expected change in employment growth put at 6.5%.
- 40% of companies anticipate further fundraising in the coming year, with 38% likely to use public equity.
- 92% of companies support the idea of establishing a mandatory corporate governance code for standard listed, AIM & PLUS quoted companies, which is fit for purpose and take into account their size and relative lack of complexity.
- 64% of small and mid-cap quoted companies believe that their institutional investors are engaged or very engaged with their companies.
To find out more, please visit our QCA/BDO Small and Mid-Cap Sentiment Index microsite to download the full report.
Thank you to all that participated in this survey. Our next index will focus on tracking the key aspects of business sentiment – and seeing whether the sector’s optimism continues. So please help us make the voice of the small and mid-cap quoted company sector heard and participate next time too.