britain’s small companies hoard cash as brexit looms
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Britain’s small companies hoard cash as Brexit looms

Arab Today, arab today

Arab Today, arab today Britain’s small companies hoard cash as Brexit looms

Ballots for the Northern Ireland Assembly elections
London - Arab Today

Britain’s smaller companies are hoarding cash and cutting investment, bankers say, a sign of business confidence starting to wobble as the government sets off down the uncertain path of leaving the EU.
Companies with revenue of less than £1 million ($1.23 million) expect to invest an average of £21,690 ($26,520) in their businesses in the next six months — a fall of 74 percent compared with July, Lloyds Banking Group said on Friday following the latest results of its six-monthly survey.
This is the biggest drop since the bank added the question about investment plans in 2015 to its long-running Business in Britain survey of small businesses.
“Businesses need to be careful that in cutting back on investment to boost resilience they do not put the brakes on too hard,” said Jo Harris, a managing director at Lloyds, one of Britain’s largest business lenders.
Sitting on cash could help companies weather any economic slowdown, but bankers say that reduced spending also threatens to dampen growth prospects for the economy.
The head of commercial lending at another major bank said the last time that he saw smaller companies hoarding money to a similar extent was during the 2008 global financial crisis.
The banker said companies were paying off overdrafts and other loans amid concerns that the economy may suffer after Prime Minister Theresa May seeks to begin the formal process of negotiating a divorce settlement with the EU later this month.
“Customers are nervous ... they are worried that as the news of Brexit negotiations begins to filter through then sentiment will dip,” the banker said.
Lloyds said economic uncertainty was identified as the main threat over the next six months, followed by weaker UK demand and political uncertainty.
Britain’s businesses and banks have largely defied expectations that the economy would suffer an immediate blow from the referendum result in June last year, but in recent weeks there have been signs of mounting concerns as the real Brexit process gets underway.
Aldermore Group, a specialist lender to small and medium-sized businesses, said a survey of 1,000 such companies conducted in the last financial quarter showed cash flow was their biggest concern.
About a fifth of companies said they missed an opportunity to expand their business because of a lack of available finance, Chief Executive Phillip Monks told Reuters.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

britain’s small companies hoard cash as brexit looms britain’s small companies hoard cash as brexit looms

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

britain’s small companies hoard cash as brexit looms britain’s small companies hoard cash as brexit looms

 



GMT 13:57 2017 Wednesday ,19 April

Deputy PM receives US ambassador

GMT 12:21 2017 Tuesday ,04 April

NHL won't participate in 2018 Olympic Games

GMT 16:18 2017 Thursday ,26 January

Berri, Mogherini tackle most recent developments

GMT 10:48 2017 Tuesday ,07 March

Iraqi troops resume advance in Mousl

GMT 14:15 2017 Tuesday ,21 February

CGG Secretary-General Meets Iraqi Prime Minister

GMT 18:32 2017 Wednesday ,08 February

Tourism counselor in Berlin: Meeting with German tourism

GMT 00:43 2016 Thursday ,29 December

29 former Turkish police put on trial over failed coup

GMT 22:08 2017 Saturday ,22 April

UNESCO official hails relations with UAE

GMT 02:21 2017 Tuesday ,17 October

No military solution possible in Syria: Iran's Zarif

GMT 11:01 2017 Monday ,25 September

Veolia's US growth hopes run into trouble

GMT 00:42 2017 Wednesday ,11 January

Golden Globes pulls second highest audience in decade

GMT 10:57 2017 Monday ,13 February

Pregnant Beyonce emerges with New Age Grammy show

GMT 09:40 2016 Monday ,15 August

Trump lashes out at 'crooked media'

GMT 19:17 2017 Sunday ,05 March

UAE Consul General meets Canadian official

GMT 05:46 2016 Saturday ,26 November

Turkish lira languishes near record low

GMT 15:46 2017 Saturday ,11 February

4 Spanish soldiers injured as mortar bomb explodes
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday