Business Growth Exceeds Expectation For Transport Firms

Growth in business revenue has surpassed expectations for transport businesses operating in the SME sector, according to new research.

Almost two thirds (62%) of small to medium sized 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.

John Fawcett, Managing Director of the Transport 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 transport businesses are really benefitting from improved trading conditions.

“Half of the businesses we surveyed report up to 10% growth in revenue, while 45% 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 almost three quarters of transport firms optimistic about their growth prospects for the year ahead.

The survey also reveals that as many as 53% 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 Fawcett.

“In particular, these firms must be proactive with their financial planning. The Business Barometer shows that 19% of transport SMEs 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.