One year on from the start of the credit crunch, TMT companies (technology, media and telecoms) are bucking the doom and gloom trend by remaining optimistic about the future of their businesses, according to BDO Stoy Hayward LLP.
The new research from accountants and business advisers BDO Stoy Hayward LLP, reveals that nearly a quarter (23 per cent) of TMT companies are forecasting growth of more than 20 per cent over the next three years, and almost than two-thirds (62 per cent) are forecasting growth of more than 10 per cent.
In addition, an overwhelming majority of CFOs (80 per cent) are confident that their companies will hit their revenue targets for growth over the next three years.
Julian Frost, head of TMT at BDO Stoy Hayward, said, “Given the current economic climate, these are an astonishingly positive set of results, which shows just how resilient these businesses are. This is in stark contrast to a number of other sectors across the UK who are struggling at the moment.
“Despite there being scores of column inches filled with doom and gloom, there is a light at the end of the tunnel for some sectors of the economy.”
Last week, Rupert Murdoch, chairman and CEO of News Corp, reported a 27 per cent increase in net income for the fourth quarter despite warning that the company continues to face a "much more difficult economic environment".
Revenues at the media company rose 17 per cent to $8.6 billion (£4.3bn) and quarterly operating income rose 21 per cent to $1.5 billion (£766m).Also last week, ITV revealed its revenues had plunged £1.54 billion into the red in the first half of the year as it cut the value of its broadcasting businesses including Meridian, Anglia and HTV, by £1.6 billion due to a drop in advertising sales for September.
While the figures have shown that two thirds (60 per cent) of companies have found that the credit crunch has harmed their ability to raise capital, three quarters (75 per cent) are maintaining that it remains easy or very easy for their company to gain access to the funding it may need to operate effectively.
Frost added, “This research has shown that there are a number of reasons for the TMT sector to be optimistic at the moment. Partly this resilience is due to the fact that savings from IT projects can be measured, therefore they continue to be valued more highly, and are easier to commit to, than less tangible investment plans whose benefits are less easy to measure.”
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