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‘Burst of optimism' from UK mid-market companies

UK mid-market company managers are experiencing a ‘burst of optimism' about prospects for expanding their businesses and for the UK economy, suggesting there is light at the end of the tunnel for the sector after a challenging period.

More than two-thirds of mid-market managers are optimistic about their own business prospects, and over half expect the economy to expand, according to new research produced by the private equity firm Gresham.

Around 57 per cent of firms are expecting to undertake a transaction in the year ahead, up from 50 per cent in January.

‘It is very encouraging to see the increasing enthusiasm of middle-market companies to undertake a transaction and their growing confidence about business prospects,' said Paul Marson-Smith, chief executive of Gresham.

The survey also showed, however, that there are a few areas of concern, including rising overheads and increasingly burdensome red tape and taxes, exacerbated by the proposed rise in National Insurance.

Some 42 per cent of firms said they were ‘not at all well understood' by the government, 50 per cent more than two years ago. The figure was significantly higher for northern firms, with 82 per cent feeling misunderstood by the government.

Overall, however, the outlook is improving, and firms are much more confident about prospects for the sector now than they were six months ago.

The Gresham Monitor is a twice-yearly survey of mid-market manufacturing and services companies conducted by Gresham, the private equity firm.

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