QCA publishes survey results revealing attitudes of small and mid-cap UK quoted companies in response to the coronavirus (COVID-19) pandemic

QCA publishes survey results revealing attitudes of small and mid-cap UK quoted companies in response to the coronavirus (COVID-19) pandemic

The Quoted Companies Alliance (QCA), an independent membership organisation that champions the interests of small to mid-size quoted companies, has published results of the latest QCA Small & Mid-Cap Sentiment Index which surveyed small and mid-cap UK quoted companies and advisory companies. The survey revealed that optimism about the UK economy is at record lows among quoted companies, partly due to COVID-19, and there has also been a large drop in such companies’ optimism with regard to their own business prospects.

The results revealed the following key findings:

Capital

Around half of small and mid-cap UK quoted companies are planning to raise capital in the coming 12 months to help deal with the current crisis.

Economic outlook

The lowest level of optimism in the UK economy was recorded in nearly ten years of the history of the survey. Small and mid-cap companies have a significant drop in expectations regarding turnover, with mean expected growth for Q2 2020 expected to be a contraction of -5.5% compared to the expected growth of 14.4% in Q4 2019. 

Employment

43% of small and mid-sized quoted companies intend to decrease jobs in the next 12 months and 31% intend to increase jobs. 56% of respondents have furloughed staff and 28% have laid-off employees.

Stakeholders

49% of respondents have undertaken new ways to engage with stakeholders with 21% offering new products or services to customers.

Business operations

47% of respondents agree that the crisis has revealed how their business operations could be improved. Respondents have indicated that the current enforced measures of increased remote working and less office occupancy may have long-term permanence.

Government response

77% of respondents rate the government's response to the crisis positively, though implementation of the government's coronavirus related loan schemes by banks was criticised.  

The full survey results can be found here.

Source:  QCA press release: UK companies negative on economy as leaders adapt to COVID-19 pandemic

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