FTSE 350 cash surplus tipped higher than expected

Experts expect companies in the FTSE 350 index will produce a cash surplus in
the next three years of about £302bn – 52% higher than January 2007 forecast,
according to the KPMG Cash Counter survey.

FTSE 100 companies will drive the cash generation, producing more than £278bn
by the end of 2010, up almost 61% on estimates at the start of last year, before
the credit crunch started, the Independent reports.

The big increase is expected to almost all be generated by oil, gas and
mining companies, which are flush with cash thanks to soaring commodity prices.

KPMG said oil and gas prices would remain strong and were likely to bounce
back to their highs after recent falls resulting from the slowing world economy.
Excluding oil, gas and mining companies, the FTSE 100’s surplus cash forecast
has risen 1.7%.

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