FTSE 100 cash pile swells to £166bn
UK biggest companies fearful of splashing the cash, as they defend against tough market and economic conditions
UK biggest companies fearful of splashing the cash, as they defend against tough market and economic conditions
THE UK’s largest companies are holding onto a £166bn cash pile – up £42.2bn since the financial crisis began in 2008.
Research by Capita Asset Services has found a sharp increase in cash and cash equivalents over the past five years, with the net cash position even higher – to £73.9bn from £12.2bn over the same period.
Nearly £20bn in short-term debt has been paid down since 2008, but long-term debt has increased by 11%.
Oil and gas producers account for a third of the cash pile, with 17 sectors doubling their cash positions and 13 seeing a decrease by an average of 26%.
Justin Damer, commercial director of Capita Asset Services, said: “Companies re-engineered their balance sheets to a more defensive structure as the recession bit, paying off debt and stockpiling cash, diverting the funds from business investment, acquisitions or dividends.
“But they have continued to hoard cash even as the economy has gone up through the gears, and this will prove unpopular with investors, who resent companies sitting on huge cash piles earning low returns.”
The numbers you crunch tell a story. Your expertis...
11yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe mineran into "severe liquidity issues" caused by a combination of high costs, falling iron ore prices and the impact of the Ebola virus Read More...
View articleMany CFOs believe UK is heading for a double-dip recession, says Deloitte survey Read More...
View articleTighten your belts: Bank lending to small business has been tight but another squeeze on financing could be coming Read More...
View articleAs the economy starts on the road to recovery, the business community in the UK continues to face a variety of unexpected challenges. What should FDs...
View articleThe recession may have officially ended some time ago, but for firms across the country little has changed Read More...
View articleHSBC's group FD talks about his career and the financial crisis Read More...
View articleBig bank bonuses aren't as bad as many commentators like to make out Read More...
View articleForward thinking companies are in a better position to beat the recession and win new clients Read More...
View article