Andy Sagar from Close Brothers Asset Finance.

Business growth exceeds expectation for construction firms

Published:  03 November, 2014

Growth in business revenue has surpassed expectations for construction businesses operating in the small and medium-sized (SME) sector, according to new research.

More than two thirds (69%) of SME firms say that their business revenue has grown in the past 12 months, but when surveyed a year ago, just 41% predicted growth in the same period.

The figures are drawn from the Close Brothers Business Barometer, an independent quarterly survey of SME owners and managers from a range of sectors across the UK.

Andy Sagar, national sales director for the construction division at Close Brothers Asset Finance, said: “The Office for National Statistics states that the UK recovery is progressing faster than anticipated, and our figures seem to suggest that construction businesses are really benefiting from improved trading conditions.

“More than two fifths of the businesses we surveyed report up to 10% growth in revenue, while 53% cite a jump of between 10% to 20% in the last year,” he added.

The Close Brothers Business Barometer shows confidence to be high within the industry, with over three quarters of construction firms optimistic about their growth prospects for the year ahead.

The survey also reveals that as many as 61% of respondents plan to invest in their business in the next 12 months.

“It’s very important that these businesses plan ahead to ensure they can make the most of an increasingly prosperous economy,” stated Mr Sagar.

“In particular, these firms must be proactive with their financial planning. The Business Barometer shows that 15% of construction firms surveyed say that a lack of finance is currently holding them back from seizing new business opportunities.

“This is somewhat concerning as without the necessary working capital, growth will be very hard to achieve. It’s essential that businesses explore a broad range of funding options to ensure that they succeed in meeting their forecasts for next year,” he added.

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