Deloitte CFO survey reveals 80% expect increased revenues

Ireland’s corporate moneymen are increasingly positive about the business climate here with 80% of them confident their firms’ revenues will rise over the coming 12 months, according to a survey.

The latest edition of the quarterly Deloitte CFO Survey, published yesterday, also shows that over half of chief financial officers in Ireland expect their operating costs to decline.

Another notable point from the survey — covering the second quarter of this year — is a 52% increase, from the previous quarter, in the net perception of available credit, illustrating the first time since this survey began — in the second half of 2009 — that more financial officers believe domestic credit to be easily available than not.

Similarly, perceptions around the cost of funding from Irish banks has also improved — a net 27% of respondents feeling that new credit is costly, down from 53% in the first quarter of the year. Over 30% of chief financial officers, meanwhile, believe their bank borrowings will increase over the next year.

Still, nearly 60% of respondents said external financial and economic uncertainty posed a high concern for their business, but at the same time over 50% considered their corporate strategy to be one focused on expansion.

According to Deloitte’s Shane Mohan: “It is apparent the domestic capital market is now a more attractive source of funding. This is encouraging, in light of the fact the second quarter of the year saw the Irish economy slip back into recession, with the contraction in many of Ireland’s main export markets having a significant impact on economic activity.”

“Despite the rise in market uncertainty, however, chief financial officer sentiment is remaining buoyant, a signal that Irish chief financial officers are becoming more adept at managing this challenge,” he said.

Meanwhile, only 11% of chief financial officers said they were fully ready for next February’s introduction of the Single Euro Payments Area directive, with 54% saying they are implementing necessary changes.