QCA / BDO Small and Mid-Cap Sentiment Index Report - Issue 4

We would like to present the fourth edition of our Small & Mid-Cap Sentiment Index Report, compiled in conjunction with the Quoted Companies Alliance (QCA) and powered by YouGov. 

The report examines the findings of a detailed analysis of the market to gauge the general sentiment and current challenges of the public companies outside of the traditionally higher profile FTSE 350.

We will be conducting our research over a period of three years with each report contrasting and comparing the emerging trends each quarter.  Each report will focus on specific topical issues that are pertinent to small and mid-cap companies at that time.

In this latest report, we have seen a shift in sentiment as as the optimism from the previous quarter has given way to uncertainty about the UK economy's prospects.  Conversely, companies do remain positive about their own prospects albeit with a lower score compared to results from our Issue 3 survey, launched in May of this year.  In this edition, we have been able to see some interesting results in relation to the Eurozone crisis, effectiveness of AGMs and the application of pre-emption rights.

Amongst the key highlights in this issue:-

• 71% of small and mid-cap quoted companies are pessimistic about prospects for the economy in the next 12 months;
• 55% of small and mid-cap quoted companies are optimistic about their own business prospects despite the gloom about the general economy; and
• 28% of companies are likely to use bank finance as a way to raise funds in the coming year.  This is down significantly from April 2012 (50% of companies said they would use bank finance at that stage).

To download our report, please visit our dedicated microsite at:-

http://bdoqcasentimentindex.co.uk/

To continue the discussion surrounding some of the issues raised within our report, why not join us on Twitter – @QCAand BDO.  We will be updating this regularly and look forward to hearing your thoughts. 

If you would like to find out more about how you or your company might be affected by the issues outlined in our report, please contact Scott Knight or your usual BDO adviser.