Businesses expect revenue rise but are still downbeat about wider economy

The majority of Irish companies anticipate revenue increases this year, but more than half also remain pessimistic about the wider Irish economy.

That is according to a new survey of chief financial officers undertaken by professional services firm PricewaterhouseCoopers. Some 51% of respondents said they see no change in the outlook for Ireland’s economy, while only 11% said they are optimistic about the chances of economic growth this year.

However, 58% of chief financial officers surveyed also said they anticipate growth in revenues at their own firms, with 55% saying they expect to see growth in net profits. A third of those questioned said they expect their capital investment levels to grow, but there were mixed readings on the issue of business costs — with a third expecting costs to decline and a similar amount saying they are likely to increase.

Similarly, while 35% of respondents expect their employee numbers to grow this year, 27% anticipate the opposite. Some 34% expect pay levels in their organisation to increase.

“Businesses will have undergone significant transformation when an upturn emerges,” according to PwC Ireland’s advisory leader, Paul Tuite. “With better business models and a more competitive cost structure, progressive organisations are better placed now than ever before to take advantage of growth opportunities.”

The PwC survey also identifies maintaining margins, controlling the cost base and lack of demand as the main challenges facing a company in the area of finance at present, adding that most chief financial officers feel finance is no more easily available now, than it was six months ago.

More than half of those surveyed said they are planning to change the manner in which they make investment decisions this year and their organisational structure. Marginally fewer are looking at altering their approach to risk management.

“We also see finance functions continuing to explore the wider role of shared services centres, in order to optimise processes and costs,” said PwC’s Garrett Cronin.