Big firms returning to growth, survey finds

The slump across the corporate sector over the past few years is coming to an end as the majority of finance chiefs among large Irish companies say they have returned to growth.

The Deloitte first-quarter chief financial officer survey found seven out of 10 respondents indicated their companies had now returned to growth. And 79% believe that the unemployment rate will continue to drop over the next year.

“Encouragingly, chief financial officers who are feeling more optimistic about the financial prospects of their company attribute this largely to external factors such as the overall economic situation and industry trends. Indeed economic growth in the EU is seen as one of the biggest drivers of company performance over the next 12 months,” said Shane Mohan, partner at Deloitte.

One of the key issues for the SME sector is access to finance. However, one-in-four larger firms said they had no need for funding over the April-June period and overall bank borrowings are expected to remain unchanged or decrease slightly for the year.

Other findings include that 68% of respondents signalled capital expenditure within their organisation is likely to increase, and 77% believe their corporate strategy is expansionary. A slight majority (55%) have indicated they are not finding it difficult to employ individuals with the required skills and knowledge for available roles.

With regards to the macro economy, 69% believe the Irish economy has already returned to growth, or will do so before the end of 2014.