Finance directors more optimistic says Deloitte

BUSINESSES are more optimistic than a year ago, although corporate strategies are not siginificantly different, according to the latest Deloitte Chief Financial Officer (CFO) Survey.

Covering the final quarter of 2012, it gauged the views of chief financial officers and finance directors from 112 major companies.

A year ago the major concern was a eurozone break up but just 22% cited this as a worry in 2013, compared to 37% last time, and around 80% approved of current government and monetary policy.

The survey also shows that CFOs are less worried about company-specific issues such as margins, cash flow and credit availability. In the final quarter CFOs reported a sharp decline in credit costs and now rate credit as being cheaper than at any time in the last five years.

Richard Bell, partner at Deloitte in the North West, said: “Despite expectations of a weak recovery this year, North West businesses enter 2013 with a greater focus on cost control and cash flow than at any time in the past two years. The emerging picture is of companies which are constrained by low growth and uncertainty rather than weakness inbusiness models or access to capital.

“Yet corporates have not closed the door to growth. About half of CFOs think that troubled times create opportunities to take market share and expand capacity or to implement overdue change within the business. Big businesses are also more positive about undertaking capital expenditure than they were a year ago. The difference now is that such opportunities are more selective.”