Region’s businesses "better placed to fund growth" says Lloyds

THE DIVISION of Lloyds Banking Group responsible for firms with a turnover of £10m-plus has said that more than half of its customers in Manchester have improved their balance sheet over the past 12 months through increasing the amounts of cash deposits held.

Lloyds TSB Corporate Markets said that 53% of customers in Manchester had strengthened their balance sheet since the start of the year, with the amount of cash held on deposit peaking in August.

“Since the credit crunch every business has focused on deleveraging and improving their cash position,” said Dave Allanson, area director for Lloyds TSB Corporate in Manchester, East Lancs and East Cheshire.

“Those that have successfully done so are more likely to secure the debt or working capital they need to fund their growth plans.

“The fact that over half our customers have strengthened their balance sheets is an encouraging sign for the region as a whole. It means we can continue to lend money to the right management teams with the right strategies.”

The firm said that the improvement came at a time of increasing optimism for the region’s business community.

The latest Markit PMI Survey showed that the region’s private sector growth remained robust in October – and faster than the UK as a whole – with an increase in activity leading to a fractional rise in employment for the first time in three months.