Hi-tech companies doing well and will do better, says report.
The UK technology industry continues to flourish, with the east of the country and Scotland coming out on top, despite a shortage of skilled staff, says new research.
Deloitte & Touche’s annual national survey of 2,000 companies revealed a high level of optimism in the sector in spite of recent events that have shaken confidence in the industry, such as the demise of Boo.com and a slump in technology shares.
Data Discoveries, a rapidly growing IT company based in Scotland, took the leading position in Deloittes’ Technology Fast 50 league table with a growth rate of 9,307%. Eurocall, a telecoms company, based in the North of England, bagged second place with a growth rate of 9,170%.
Research findings showed that more than three-quarters of companies polled are considering listing.
Sixty-five per cent of respondents said they did not want the government to regulate the internet.
William Touche, Deloittes’ telecoms, media and technology lead partner, said: ‘This year’s survey suggests that the environment for technology entrepreneurs in this country is improving significantly.
‘Long standing shortages of funding and poor tax incentives are being reversed.’
And he added that conditions are likely to improve further ‘as a result of the increased taper relief on capital gains tax of business assets’.