According to the Institute of Chartered Accountants in England and Wales (ICAEW), companies have become increasingly cautious about taking investment opportunities amid the ongoing uncertainty surrounding Brexit.
As the government continues negotiations with the EU, more than one in four businesses say they’ve delayed investment decisions with a further 37% saying they have no plans to invest their cash reserves in the next 12 months.
When questioned about their reasons for this, 49% said they want to remain flexible with their investment options, 32% are bracing themselves for further uncertainty and 30% said they simply don’t have any investment opportunities.
As a result of the collective cautiousness of businesses across the UK, 61% of those surveyed reported a cash surplus in 2016/17 and 64% are anticipating similar results from 2017/18.
The ICAEW has now urged businesses to be more proactive and loosen their purse strings in an attempt to promote growth.
Chief executive of the ICAEW, Michael Izza commented:
“Businesses should be investing now for the future and not for austerity. They need to look for opportunities in overseas markets, make efficiency savings and invest in innovation, talent, new products and services to create a longer-term return – and this involves spending some of the mountain of cash they’re sitting on.”
If you’re looking for ways to invest a cash surplus, please don’t hesitate to ask us about our business development and consultancy services. One of the many ways we can help you is with reinvesting in your business. In an increasingly digital environment for example, updating your IT infrastructure would ensure that all your systems remain up-to-date.
There are also more traditional options including developing staff and investing in the latest technology – both of which could pay off in the long-term.
If you would like advice about investment opportunities for your company, please feel free to contact PKB about our business development and consultancy services and we will be more than happy to help.