UK firms tap investors for growth capital
Source: Capita Asset Services
Around £10.2bn of new capital was raised by firms listed on London’s main market during the first three quarters of 2013, according to Capita Assets Services – more than twice the amount raised in 2011 and 2012 combined.
What’s more, this figure is set to rise by a third in 2014 as firms demand additional funds for expansion. Capita’s Justin Cooper says the funding needs of UK companies have turned a corner from survival to growth. The peak of the financial crisis saw firms raise £124bn in two years in a scramble to survive the credit crunch, with banks responsible for two-thirds of the equity raised.
That said, there are still vestiges of the financial crisis to be seen. Barclays’ recent £6bn rights issue to plug a gap in its balance sheet inflated the 2013 figures. However, even excluding the financial sector, the amount of capital raised is already 18 per cent above the whole of last year.
Employment outlook up
The Manpower UK Employment Outlook survey for the first quarter of 2014 revealed a steady job market, but with some marked regional and sector variations. The survey found that 8 per cent of UK employers expect to increase staffing levels, 5 per cent anticipate a decrease and 86 per cent forecast no change. After adjusting the data to account for seasonal variation the overall outlook stands at +5 per cent; relatively stable both quarter-on-quarter and year-on-year. Regional hiring expectations are outpacing London, and the most optimistic sectors are finance & business services and utilities with employers in the construction sector the most bearish.
