BDO Property Advisory Snapshot
20 April 2017
The BDO Professional Services team were delighted to welcome over 80 guests at our Annual Property Advisory Dinner on Thursday 16 March 2017. Before the dinner we issued a short questionnaire to explore the state of the market and the response was very encouraging.
In summary, the results showed a positive response to the economic uncertainties that firms are facing following the challenges presented by Brexit, Article 50 and the weakened pound. Overall:
- 45% of respondents expected to achieve an annual growth in turnover of 6% or above over the next 2-3 years (21% greater than 8%)
- 35% of respondents envisaged a growth in annual profit of 6% or above over the next 2-3 years
- 52% of respondents expected their growth to originate from the UK over the next 2-3 years (16% - Asia, 12% - Europe, 10% - US, 10% - Other).
Interestingly, the primary threat on the minds of respondents was not Brexit, but people, in terms of skills and expertise. Whereas, the impact of inflation was considered the least significant risk, relative to those other risks listed.
Again we find ourselves in unprecedented times. During the recession firms learned to become operationally more flexible and focussed on financial discipline. It will be interesting to see how those skills learned and experienced gained during the recession may benefit firms navigate the next 2-3 years.
The full analysis of the survey results is available to download below.
Separately, an interesting statistic drawn from our recent research as part of our New Economy campaign shows that throughout a volatile 2016 and with the shadow of Brexit negotiations looming, mid-sized firms remained confident and continued to grow overseas turnover.
The UK's high-growth and entrepreneurial mid-sized businesses have boosted their overseas turnover by 50% in the last five years while large and small businesses have faltered declining by 14% and 25% respectively. In the last year alone, mid-sized businesses increased overseas trade by 7% (from £119bn to £127bn). In comparison, the levels of overseas trade of FTSE350 and small businesses in 2016 fell 30% (from £524bn to £366bn) and 13% (from £12bn to £10.4bn) respectively.
For more information on BDO's New Economy report please visit our New Economy Microsite.