BusinessPeople In BusinessCFOs upbeat in face of stagnant growth

CFOs upbeat in face of stagnant growth

A poll of 200 senior finance executives by American Express finds that 81% of finance directors are anticipating an increase in revenues in 2013

CFOs upbeat in face of stagnant growth

FINANCE CHIEFS are confident of increasing revenues, despite chancellor George Osborne revealing lower economic growth forecasts from the government’s budget watchdog during last week’s Autumn Statement.

According to the Office for Budget Responsibility (OBR), the economy will have contracted by 0.1% this year – down from its March forecast of 0.8% – while growth is expected to be 1.2% next year and 2% in 2014.

The chancellor is on course to eliminate the structural deficit within five years. However, the Institute of Fiscal Studies said Osborne’s aim of getting debts falling as a share of GDP has been delayed by one year to 2015.

Finance directors remain upbeat about their prospects despite the gloomy outlook. A poll of 200 senior finance executives by American Express found that 81% of finance directors are anticipating an increase in revenues in 2013 and 77% expect to see flat to moderate growth in 2013.

Investment priorities have shifted from cash preservation strategies towards making investments to drive growth: 61% of finance executives are prioritising investments in revenue generating activities, versus 35% opting for cash preservation to protect the bottom line.

Investments in new products and services and technology top the list for finance executives in 2013, while international expansion is also at the heart of FDs’ spending agenda in 2013, with 72% of survey respondents stating they have plans to expand in international markets, and 56% stating they will spend more on investments in expanding in new markets than they did in 2012.

“CFOs are displaying a nimble approach in balancing their organisations’ costs with the need to invest in areas to generate increased revenues and to deliver on their growth agenda,” said Brendan Walsh, senior vice president, global corporate payments Europe, American Express.

“The increasingly global nature of the economy has significantly increased new business opportunities for UK plc and it is clear that companies are focused on making sure they are well placed to leverage this significant growth opportunity.”

Related Articles

One in four FTSE 100 bosses hold accounting qualification

People Business One in four FTSE 100 bosses hold accounting qualification

1y Richard Crump, Writer
‘Personal' reasons cited for Sodexo CFO Herbert-Jones' early exit

People Business ‘Personal' reasons cited for Sodexo CFO Herbert-Jones' early exit

2y Chris Warmoll, Writer
Colin: Fantasy finance for Disney CFO

People Business Colin: Fantasy finance for Disney CFO

2y Taking Stock
Aero FD and Deloitte set for tribunal after FRC issue formal complaint

Accounting Firms Aero FD and Deloitte set for tribunal after FRC issue formal complaint

3y Chris Warmoll, Writer
Accounting and finance staff demand leaps

People Business Accounting and finance staff demand leaps

3y Kevin Reed, Writer
Ex-Aero Inventory FD struck off and fined by FRC

People Business Ex-Aero Inventory FD struck off and fined by FRC

2y Chris Warmoll, Writer
Friday Afternoon Live: 'Posh' accountants; The CFO Agenda 2015

People Business Friday Afternoon Live: 'Posh' accountants; The CFO Agenda 2015

2y Kevin Reed, Writer
blur group finance chief leaves to face bankruptcy hearing

Legal blur group finance chief leaves to face bankruptcy hearing

2y Chris Warmoll, Writer