Optimism in the UK corporate sector returns

YORKSHIRE firms must look to work together to break into new markets, according to research.

Britain’s biggest businesses are preparing to invest billions of pounds in growth-related initiatives this year as optimism in the UK corporate sector returns, says business advisory firm Deloitte.

In a survey of 126 companies generating revenues in excess of £1bn, Deloitte said that 60% intend to invest at least £50m this year in growth initiatives and a further 30% will do likewise within two years.

Regional collaboration features strongly: a range of approaches are being considered by companies seeking to break into new markets. Forming alliances with local businesses appears to be the most popular, with 60% of respondents considering such a move. Fifty five per cent are examining options for M&A activity while 44% are seeking to grow organically. These options are not mutually exclusive.

Encouragingly, 68% of business leaders expect the next three years to be a period of growth for their business, with 28% saying it is about stability and just 4% focusing on surviving.

Martin Jenkins, practice senior partner at Deloitte in Yorkshire, said: “The low growth environment of the past five years, coupled with levels of consumer and government debt, mean that big business has to take a lead in driving a new era of wealth creation in the UK. 80% of respondents in our survey believe that business is best placed to do this.

“Increasing corporate optimism is encouraging and is echoed in the results from the latest Deloitte CFO Survey, providing signs that big business has reached a turning point in terms of confidence.”