Small businesses chase export growth

Dec. 21, 2011 - PRLog -- Small businesses chase export growth

- Export turnover grows by 42 per cent in last quarter
- Domestic turnover increases

Average export turnover for small businesses increased by 42 per cent between Q2 and Q3, according to The Cashflow Barometer, a quarterly report from Invoice and Asset Based Lender, Venture Finance.  

Peter Ewen, Managing Director of Venture Finance and Chairman of the International Factors Group, comments, “Tentative domestic performance appears to have created a real appetite for growth overseas.

“In the current economic climate, exports could be a vital revenue stream for businesses, reflected in the rising export turnover experienced across the last quarter.”

The Cashflow Barometer is a quarterly indicator of the financial performance of UK small businesses, based on analysis of 700 companies.

Export growth

Further export data suggests that the number of overseas customers has increased by 17 per cent since Q2 2011 and has risen by 40 per cent since Q3 last year.

There is further positive news as the number of days outstanding for payment from export customers decreased by 16 per cent in the last quarter, an average fall of 11 days.

Domestic stabilisation

Meanwhile, turnover at home remains steady, increasing by 8 per cent between Q2 and Q3 2011.

The number of customers remained the same between Q2 and Q3 2011, despite having increased by 4 per cent since Q3 2011.

Peter Ewen, Managing Director of Venture Finance and Chairman of the International Factors Group, comments, “Signs of stabilisation at home could provide the confidence needed for businesses to embrace new opportunities.

“It is vital that businesses overcome this recent knock in confidence for their own, and wider, economic prosperity”.

Sector success

Sectors vital to the economy have also enjoyed some success in the last quarter, with the manufacturing and engineering sectors in particular revealing increased turnover of 8 and 3 per cent respectively.

A positive indicator for the employment environment, recruitment turnover also increased by 11 per cent since Q2 2011 as did services turnover, increasing by 6 per cent.

The number of customers to manufacturing firms, however, decreased by 3 per cent in the last quarter, falling by 12 per cent in the last year.

Distribution firms are seeing a particularly rosy outlook with turnover increasing by 11 per cent between Q2 and Q3 2011.

Peter Ewen comments, “Overall, the picture looks fairly positive for businesses driven by rising exports and an encouraging performance from the engineering, manufacturing and distribution sectors – good news for both the Government and business owners.

“To make the most of this opportunity, businesses must now look to continue this success by securing the working capital needed to grow and make the most of business opportunities both at home and abroad,” concludes Ewen.

Ends

Notes to editors

About The Cashflow Barometer Report

The Cashflow Barometer is comprised of statistics from over approximately 700 Venture Finance invoice finance customers. All companies in the sample fall into the BIS definition for small businesses – under £5.6m turnover and fewer than 50 staff. Percentage changes are based on mean averages for monthly turnover, customers, time taken to pay invoices and invoice numbers for 2007, 2008, 2009, 2010, and Q1 & Q2 2011. The percentages included are percentage changes between two values.

About Venture Finance

Venture Finance is an award-winning independent Invoice and Asset Based Lender and part of the ABN AMRO Commercial Finance group. Established in 1989, Venture provides Factoring, Invoice Discounting, Export Finance, Structured Finance and numerous related services to start-ups through to £250m turnover organisations. Providing consistent support via its 200+ staff and 11 regional offices, Venture helps clients manage working capital, refinance, restructure, fund business opportunities and expansion, purchase new equipment and finance M&As.