Positive growth forecast by small leisure firms

Published: 13 September, 2011

Three quarters of small and medium-sized consumer and leisure firms are forecasting 6% growth in the next year, with a third of those predicting a turnover increase of more than 20%.

That's according to research carried out across 250 firms for private equity firm ECI Partners, which surveyed companies including Bargain Booze and Tragus, which owns the Café Rouge restaurant brand.

Prospects for job creation are equally strong, as 70% of chief executives questioned in the sector expect to employ new staff, and 54% forecast growth in employee numbers of more than 6%.

"It's good news that despite a tough few months, nearly three quarters of the SMEs surveyed by ECI are looking to recruit over the next year and half expect to see substantial profit growth in that period. Up and down the country, it is Britain's SMEs that are driving our economic recovery," said Mark Prisk, Minister of State for Business and Enterprise.

For 94% of consumer and leisure bosses organic growth will be "very significant", or "significant" rather than by acquisition, where only 33% rated it as such. The top two drivers are seen to be increasing market share (20%) and entry into new geographical markets (18%).

Access to finance is still an issue for many sectors, but far less so for consumer and leisure businesses, where half believe it will be "easy" or "very easy" to raise finance in the year ahead; leaving 48% of chief executives thinking it will be "difficult" or "very difficult" to raise finance. This compares with 60% overall.

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