The most recent quarterly survey conducted by Exeter Chamber of Commerce has revealed that businesses in Exeter are hesitant regarding immediate future investments.
Of the businesses surveyed, only 45% reported a sales increase over the last 3 months; the lowest figure on record. In addition, figures for investment in the last quarter are also much lower with just 47% of businesses surveyed reporting that they have made investments in the last 3 months. Only 9% of surveyed businesses reported high business confidence.
Derek Phillips, vice president of Exeter Chamber of Commerce said: “Our survey reflected a significant change in business results and expectations. For example, those reporting an increase in sales was the lowest ever recorded together with a much-reduced aim for future investment. Business confidence also showed the lowest figure since 2008. Conversely, individual sectors are reporting clear positives with aspects of increased growth across the board.”
Attendees at the Bank of England panel meeting held on Thursday 21st September at which the survey was presented gave a snapshot view on the economic landscape, including representatives from property, legal, digital, IT and communications and agriculture.
Legal & Property
Cameron Caverhill is a partner and head of property at Kitsons LLP, who have offices in Exeter, Torquay and Plymouth. The solicitors reported a busy July and August across all legal sectors. Kitsons reported that residential conveyancing has grown significantly across all three offices, with the Exeter office doing 250% more completions in August this year than in the same time last year.
Cameron said: “Any Brexit related concerns have not resulted in a reduction in instructions. We expect to grow our Exeter office further over the coming months and I am continuing to receive instructions on both residential and commercial development projects. However, high Stamp Duty Land Tax rates are a disincentive for some small house builders.”
Commercial Property
Mark Pellow is director at Vickery Holman who offer professional advice and experience in Commercial property services, with offices in Exeter, Plymouth and Truro. Mark said: “The sector has been strong in previous years for many, especially in commercial property, despite Brexit concerns. There was a summer slowdown in the commercial property market, though this is not an unusual pattern. However, the recent decision from developers to pull out of the proposed Princesshay expansion is a particular disappointment to the local market. The next two months will be important to see if any real uncertainty is impacting this market sector.”
Digital
Julie Hawker, is joint chief executive at digital agency Cosmic, who are projecting a 25% growth in the current financial year, partly as a result of new EU projects being commissioned. As a result, Cosmic’s staff numbers have grown, with a team of 32 people currently (up by 10 so far this year)
Julie Hawker, joint chief executive of Cosmic said: “We’re experiencing significant growth this year, and that’s a reflection on some strong commercial growth with new programmes and services being developed, but also due to our determination to make the most of EU projects which we are involved in and using that position to channel additional support, training and resource to SMEs across the area.”
IT & Communications
Harry Langley, is finance director at swcomms. The company has seen a rapid shift over the last eighteen months from site based deployments to the adoption of Cloud based technology deployments, with the later now outnumbering the former.
Harry said: “For the industry, the commercials of Cloud based technology means that the cost model has moved from capital expenditure to revenue expenditure for users. The implications of this on balance sheets means that Cloud technology providers are financing the background capital cost of the underlying technology asset as a managed service, but it means the user never has ownership of the asset and effectively makes the same payment for as long as the service is used.”
Insolvency
David Kirk, partner at Chartered Accountants and insolvency specialists, Kirk Hills, said: “Kirk Hills liquidated 15% less companies in the first 8 months of 2017 compared to 2016 – which is a good sign for the economy generally. It is evident that company failures are due to internal problems or bad management rather than external factors and it is interesting that none of the insolvent companies blamed Brexit as the reason for their downfall.”
Agriculture
John Lee, Chairman of Mole Avon Trading Ltd, said: “Within the agricultural sector, wet weather negatively impacted the quality of the wheat and barley harvests which may produce a limit on export opportunities. The weakness of the pound, however, supported exports but also had an adverse impact on imported goods such as fertiliser and agri chemicals. The impact of Brexit is already clear on seasonal labour, and this year, demand from farmers in some places is reported as 20% higher than applicants.”
For more information visit www.exeterchamber.co.uk