Vantis plc: Owner-Managed Businesses Confident on Economy

Over half of the leading owner-managed businesses in the UK believe that the economy will improve over the next 12 months, according to the latest Vantis (LSE:VTS) Market inSight survey. Latest findings have shown that 58% of respondents are confident in the UK’s economic prospects, despite the uncertainty caused by a general election. Just one in five believe the economy will decline.

The Vantis Market insight survey is a regular bi-annual survey among leading owner-managed businesses based in the UK and is a barometer of sentiment in this key sector.

To support this positive business environment, over a quarter (28%) of businesses surveyed have said that they are also expecting to increase staff numbers over the next year, with less than one in ten considering decreasing staff numbers.

David Rankin, managing director of Business Advisory & Tax at Vantis, comments: “It is encouraging that owner-managed businesses, the backbone of the British economy, are putting their money where their mouths are. Around 58% of owner-managed businesses think the economy will improve over the next 12 months and almost a third of businesses are looking to increase their staff headcount. Whatever the outcome of the forthcoming election, the market environment is becoming more favourable for business.”

While cashflow is continues as the most important issue for owner-managed businesses, with 38% claiming it is the single most important issues, pricing of products is second (with 18%), as cost reduction reduces in importance.

“It is understandable that cashflow remains the most important issue at the moment. It is interesting to note that cost reduction has moved down the list of priorities, replaced by pricing of products and services. For most businesses the cuts have now been made - they are now focusing on re-building their balance sheets,” adds David Rankin.

Other findings from the Vantis Market inSight survey show:

• Considering the economic climate, 81% of firms are hoping to remain as they are, 12% are looking to acquire or merge and 7% are looking to expand internationally.
• There are a significant number of businesses who expect to see their margins decreasing in the year ahead (29%).
• Most businesses expect to see their customer base increase over the next year (59%). The majority of businesses expect to increase or maintain their level of products and services.

David Rankin concludes: “This survey is a reassuring sign that most owner-managed businesses now feel in a more confident position; that they might have weathered the worst of any storm, and are holding tight for an expected upturn in the economy. Our survey shows that many anticipate margins to be pressured, however businesses are planning to expand their client bases and services. Nobody is over-optimistic, or thinks we are out of the woods yet, however this round of our survey shows there is definitely a current air of cautious optimism within owner-managed businesses in the UK.”

The Vantis Market inSight Survey was completed by over 100 UK owner-managed businesses across the UK, employing on average 100 staff and operating across a range of sectors, including technology & telecoms, hospitality & leisure and media. This bi-annual Vantis Market inSight survey was conducted in March 2010.

About Vantis plc Vantis plc is one of the UK’s leading accounting, tax and business recovery and advisory groups, focused on helping owner-managed businesses and high net worth individuals successfully achieve their personal and business aspirations.

Services are provided locally and nationwide by experienced professionals and specialist industry teams who offer comprehensive sector knowledge and product expertise. Vantis strives to provide all clients with successful, bespoke solutions to help generate and preserve their wealth.

The Vantis group offers a range of specialist skills split across two business units namely: Business Advisory and Tax (Accountancy, Taxation, Business Advice, Corporate Finance, Independent Financial Advice, Customs Duty Recovery & Advisory Services, Forensic Accounting & Dispute Resolution, Outsourcing, Management Consultancy, Company Secretarial); and Business Recovery Services (Corporate Recovery, Personal Insolvency, Restructuring Services & Asset Finance).

The Vantis group currently has over 1000 staff operating from 16 locations throughout England and is listed on the Alternative Investment Market (AIM).

For more information about Vantis, visit: www.vantisplc.com

Vantis Group Ltd, a Vantis plc group company, is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.