The results of the Deloitte 2013 Q1 Survey have been released and they show a steep drop in uncertainty, as well as rising optimism among UK corporations. Launched in 2007, the quarterly survey gathers data from a panel made up of over 300 CFOs, mainly from FTSE 350 companies.
It measures shifts in the CFOs’ opinions on “valuations, risks and financing.” And its quarterly results are used as a benchmark to measure the financial attitudes of the country’s major corporations.
The survey results go on to reveal that international companies, which are defined as those which derive more than 70 per cent of their revenue from outside of the United Kingdom, have shifted their focus away from a defensive stance to an expansionary one. UK-facing companies, in contrast, which derive less than 30 per cent of their revenues from outside of the country, remain defensive, according to the latest survey results.
Borrowing funds from a bank or issuing bonds are cited as the most popular methods of raising capital by survey respondents. Equity issuance has also gained favour among CFOs who participated in the survey.
Respondents stated that they considered equities to be “overvalued.” This is the first time in three years they have been viewed in this manner. For the past five years, equities have been seen as an overvalued asset by CFOs.
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