Finance directors look to expand and invest

FINANCE directors of large UK companies are looking to expand their businesses in 2011, invest in capital expenditure and take on more staff.

That’s according to a fourth quarter survey of 126 chief financial officers carried out by the accountancy firm Deloitte.

Its findings suggest finance directors are moving from a defensive position and are now prepared to invest in new products and services or explore new markets.

Nearly two-thirds work for large public companies quoted on the FTSE 100 and 250 indices which usually have overseas operations. Some 61% of respondents said they see countries outside the UK, especially emerging economies, as being the main driver of revenue growth in 2011.

Richard Bell, transaction services partner at Deloitte and head of the UK regions, said: “If 2010 was the year of balance sheet rebuilding and cost cutting, then 2011 looks set to be the year in which corporates start spending again.

“A new emphasis on expansion by the UK’s large companies lends support to the idea that the recovery is likely to broaden out during 2011 aided by growth in private sector hiring and capital spending.”