FDs to use higher profits to plug deficits

Finance directors polled by the Institute of Chartered Accountants in England
and Wales say they will use extra profits they expect to generate this year to
plug pension hole deficits.

The institute surveyed 1,200 finance professional with respondents saying
that on average, they expected profits to grow by 5.9% in 2006, up from 4.3%
last year.

Eric Anstee, chief executive at the ICAEW, said: ‘Businesses are confident
that turnover and profit growth are set to accelerate over the next year.

‘What concerns us is that these profits may not find their way into the
economy, because the rate of capital investments is predicted to slow down.’

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