Tag Archives: results

Accountancy & Accounts

Confidence among UK accountants remains fragile despite Q2 rise

The latest ACCA and IMA Global Economic Conditions Survey (GECS) showed confidence amongst British SMEs has increased for the second consecutive quarter, although the improvement in Q2 was modest compared to the previous quarter. Confidence remains notably below its long-term average.

 

After significant challenges in Q4 2024 and Q1 2025, there are some possible signs of optimism. While the capital expenditure index remains significantly below its average, it improved its result this quarter and is markedly improved from its position in Q2 last year.

 

The New Orders index improved for the third consecutive quarter, which combined with improvements in the employment and staff investment indices suggests the post-Budget shock has somewhat abated and firms are starting to plan for growth.

 

These results show considerable noise in the marketplace and businesses will be looking for certainty in order to plan for growth. The index tracking access to finance has shown much volatility in the recent past, with a sharp fall this quarter. Businesses are also reporting a second quarter increase in problems securing prompt payment.

The publication of the UK government’s Spending Review, Industrial and Trade Strategies came after this data was collected, so the government will likely hope that this will provide some further improvement later in the year. However, with inflation again increasing, it’s clear that businesses remain in a cautious mood.

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “The UK economic and global outlooks remain challenging for business. The publication of the industrial strategy, trade strategy and upcoming small business strategy are important steps, but business needs to see steps from the Government that it is focused on providing certainty. The upcoming Budget will need to deliver clear and long-term actions that will support the rebuild of business confidence and a focus on growth.”

 

Globally, for the first time, geopolitics topped accountants’ risk priorities in Q2. Economic fears tied with regulatory and compliance risks as the second highest risk priority, while talent scarcity and cybersecurity remained critical but were slightly less prominent this quarter.

 

Climate change, fraud, and supply chain risks remained lower down the agenda for global respondents, suggesting a renewed focus on macro-external volatility, with boards and executives reacting to intensifying global conflicts, regulatory unpredictability and economic pressure.

 

Jonathan Ashworth, chief economist, ACCA, said: “After rising strongly in Q1 2025, confidence among UK small and medium-sized enterprises (SMEs) only registered a modest improvement in the Q2 2025, and remains depressed by historical standards.

 

“There were quite large gains in the Capital Expenditure and Employment indices, but both remain at low levels historically, consistent with ongoing caution among firms. There was a very minor gain in the New Orders Index, and it is not very far below its historical average.

 

“Meanwhile, it was encouraging to see that cost pressures for firms look to be becoming a little less severe. Our indicators of corporate stress appear to be broadly within the range of values they have recorded in the last few years.

 

“All in all, while some encouragement should be taken from the improvement in our key indicators this year, they still remain indicative of a very challenging backdrop for the UK economy, and developments with the global economy pose downside risks in the second half of the year.”

Business, FInance, News, Swansea, Wales

Swansea Building Society celebrates record results, launches new app and donates to Prostate Cymru at AGM

On the back of posting yet another set of record-breaking results, Swansea Building Society held its annual general meeting (AGM) at the Swansea.com Stadium yesterday (Thursday, April 24). The Society also presented a substantial cheque to its new official partner charity, Prostate Cymru, donating more than a pound for every vote received.

At the well-attended event, the board of the Society presented and explained its best-ever financial performance to members. These results reflected the Society’s continued focus on supporting local communities through its growing network of branches across South Wales, alongside the benefits of an ongoing investment programme that began in 2015.

The AGM also marked the beginning of the Society’s new charity partnership with Prostate Cymru. A cheque for £2000 was presented to the charity on the day, reflecting the Society’s pledge to donate a pound for each member vote received.

In addition to reviewing its financial performance, the Society announced the successful launch of its brand-new mobile app and online service, which now allows customers to open a savings account and manage their finances at their convenience. This development was highlighted as an enhancement — rather than a replacement — of the Society’s highly valued face-to-face service through its local branch network.

Alun Williams, Chief Executive of Swansea Building Society, said:

“We were delighted to report another record set of results and to celebrate them in the company of our members at this year’s AGM. Our record asset growth, supported by strong profitability, has further strengthened our foundations for sustainable future growth.

“Alongside our financial achievements, we have continued to invest in the Society to ensure it remains modern, relevant, and accessible. The launch of our new app and online savings service is a key part of this — giving members the convenience of managing their money in the way that suits them best.

“That said, we remain absolutely passionate about our objective of opening and not closing branches, preserving personal, face-to-face service for those who prefer it. The app is designed to complement this, not replace it.

“Our continued growth and high levels of customer satisfaction reflect the care and dedication of our team, and I am proud of the positive difference we continue to make to our members and our local communities.”

The Society achieved double digit growth in its total assets, mortgages, savings and capital for the fourth year running, despite the difficult economic environment.

For the year to December 31, 2024, total assets and savings both grew by 14%, while mortgages grew by 11%. Total assets increased by £86.7m to £693.7 million and savings balances increased by £81.8 million to £647.3 million, while mortgage balances grew by £52.3million to £530.1 million, driven by gross mortgage completions of £111.0 million.

The Society’s growth was supported by record profits before tax of £6.3 million, beating the previous record of £6.2 million achieved in 2023. This increased the Society’s capital reserves by 12% to £44.5 million. This is vitally important, as it provides greater reserves to support members achieve their financial goals.

The Society remains one of the few financial institutions in the UK that receives no wholesale funding or support from the Bank of England in the form of cheap funding. Its balance sheet is funded entirely by customer savings balances and its own capital reserves built up from retained profits over many years.

Accountancy & Accounts, Business, Business Finance, Research

Confidence among UK accountants rises despite tough trading conditions

Following a historic low of confidence in Q4 2024, Q1 2025 shows an uptick amongst UK accountants, although still well below normal confidence levels

Confidence among UK accountants rose marginally in Q1 2025, after falling to the lowest ever level in Q4 2024, according to the Q1 2025 Global Economic Conditions Survey (GECS). The survey from ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) suggests that confidence amongst British SMEs has materially improved in Q1, but across the board there was a mixed set of results.

 

There was a second consecutive increase in the New Orders Index, though it remains below its historical average, but not significantly. While the Employment Index registered a decent improvement, the Capital Expenditure Index declined modestly – both are at very low levels historically.

 

Concerns about suppliers and customers going out of business declined this quarter, however there were significant concerns evident in some key measures. There was a meaningful rise in the proportion of respondents reporting increased operating costs – it is now at its highest since Q1 2023. Problems securing prompt payment and problems accessing finance indices both rose for the second consecutive quarter, which could negatively impact business cashflow and financial viability.

 

Jonathan Ashworth, chief economist, ACCA, said: “Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring. Unfortunately, with global trade tensions stepping

 

 

up markedly since the survey was completed, the downside risks to the global economy have increased significantly.”

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “With business confidence so low and all the talk of government strategies, now is the time for action. The lack of final published strategies has a negative impact on businesses, who look to those plans to prioritise investment and grow. While the global market flux provides a challenging environment, it also provides opportunities for business to expand into new markets and a lack of positive forward momentum is holding us back.”

 

Alain Mulder, senior director, Europe Operations & Global Special Projects at IMA, said: “New US policies on trade and government spending, and the uncertainty surrounding them, appear to have had a large negative impact on confidence, while declines in the global markets and signs of slowing in the US economy were likely factors too.”

 

Read the report here

Accountancy & Accounts, Research

Accountants face new era of ethical challenges

New research reveals that top three areas for ethical challenges are leadership, culture and sustainability – and that ethical dilemmas are becoming more complex

Professional accountants, long trusted as custodians of financial integrity, are facing a new era of ethical challenges amid a rise in business scandals and evolving expectations. 64% of respondents said that ethical dilemmas have become more difficult to resolve in the past three years.

 

A report from the world’s leading professional accountancy body ACCA (Association of Chartered Certified Accountants) published to mark Global Ethics Day, highlights the evolving nature of ethical challenges and the increasing complexity of ethical dilemmas in accountancy. The new era of ethical challenges for professional accountants is based on over 1,100 responses from 135 countries.

 

The findings reveal that 55% of accountants have witnessed unethical behaviour in their career
and almost one in four (24%) have been put under pressure to behave unethically in the last
three years. In addition, the results revealed that more men have experienced ethical pressure than women: 27% of males have been put under pressure to act in an unethical way, compared with 19% of females.

People were asked to name their top three areas for ethical challenges over the past three years. The top results were:

  • leadership and culture (40%)
  • AI and technology (32% and 26%)
  • sustainability (30%)

 

Globalisation, driven by technology, is facilitating businesses to expand across borders – which in turn creates new ethical challenges emerging due to regional variations including cultural,

legal and economic factors. While the drivers of complexity in ethical dilemmas are broadly

similar globally, the research underscores the importance of considering local factors in

promoting and enforcing ethical behaviour.

 

By contrast, the nature of where we work has also transformed during this time. With people often working remotely, and individually while part of a team, when ethical challenges do arise, they’re potentially resolving them in a different way.

 

The research also highlights key areas for senior leadership to address in the near future. These include: mental health and wellbeing, professional competence and continuous learning, technology and data ethics, ethical leadership and governance, diversity, equity and inclusion and sustainability reporting.

 

Report author, Sarah Lane, head of ethics and assurance at ACCA, said: “These insights
underscore the need for robust ethical leadership and culture in organisations, and ongoing
learning and development to support professional accountants in navigating these challenges in today’s evolving landscape.”

 

Read the full report.

Business, Business Advice, Economy & Jobs News, Wales

Recruitment, trade and taxation sticking points for businesses in Q3

Businesses in Wales have revealed the opportunities and challenges they faced in Q3 of 2024 in Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

Businesses in Wales who trade goods and services domestically performed well. Over two thirds (68%) of businesses taking part in the survey traded in the UK only. 38% of these businesses stated that there had been an increase in UK sales and 33% reported an increase in orders and advanced bookings, with both of these figures up from Q2.

It was a mixed picture, however, for Welsh businesses who trade internationally. Almost a quarter (23%) of businesses in Wales shared that their export sales had increased in the last three months, up from 15% in the previous quarter, but only 7% saw export orders and advanced bookings increase in Q3.

David Peña, the Chamber’s International Trade Manager, said: “Many of the survey respondents cited new markets as an opportunity for their business so we need to ensure that those who wish to export can access the guidance, support and contacts they need to fully achieve their trade ambitions.

“Welsh businesses have so much to offer on the international stage. Different markets bring different challenges, and penetrating these markets requires innovation and information. We heard several inspirational success stories from exporters across Wales at our recent exporting excellence event held in collaboration with our partners Atradius and Welsh Government, showing how the right support and ideas can make exporting a reality.”

The Quarterly Economic Survey for Q3 also revealed that recruitment continues to be a sticking point for many businesses in Wales.

54% of the businesses surveyed attempted to recruit staff in the last quarter, primarily for full-time positions. 79% experienced difficulties recruiting, particularly for professional and managerial positions, citing a lack of appropriate, experienced candidates and skills requirements not being met.

While recruitment and retention remain an issue, an improved economic picture has led to a shift in which external factors are more of a concern to businesses in Wales than they were three months ago. 55% of businesses in Wales stated that taxation was more of a concern this quarter, more so than interest rates, business rates and inflation.

Paul Clark, President at Chambers Wales South East, South West and Mid, said: “With an ongoing skills shortage in the private sector and concerns regarding taxation, businesses in Wales will be watching the Autumn Budget later this month with great interest. Throughout the election campaign and their time in office to date, the government has repeatedly stressed its commitment to boosting economic stability and growth, and the Budget will be chance to set these measures to develop the economy and remove barriers to a higher growth future.”

FInance, Finance News

Swansea Building Society Reports Record Results, Presents Major Donation to Maggie’s at AGM

At the annual general meeting (AGM) hosted at the Swansea.com Stadium on Thursday, April 25, Swansea Building Society unveiled outstanding financial results for the year. Additionally, the Society showcased its dedication to community support by presenting a significant donation to Maggie’s, amounting to more than a pound per vote received.

At the well-attended event the board of the Society presented and explained its best-ever set of results to members as it benefitted from supporting local communities from its growing network of local branches across South Wales while reaping the rewards of an investment programme it started in 2015.

The Society was thanked by a representative from cancer charity Maggie’s, which received almost £20,000 of donations from the Building Society last year. This figure was topped by a further donation of £2,000 rounded up based on the almost 1900 votes it received from members, the highest number of votes ever submitted.

Alun Williams, Chief Executive of Swansea Building Society, said:

“As we reflect on the past year, I am pleased to announce that Swansea Building Society has achieved an unprecedented level of success, despite navigating through turbulent market conditions. Our steadfast commitment to serving the needs of both borrowers and savers amidst a challenging backdrop of cost-of-living crises, fluctuating house prices, and rising interest rates fills me with immense pride.

“Furthermore, throughout our centenary year, the dedication and care exhibited by my colleagues surpassed all expectations, reaffirming our unwavering commitment to our members. Central to our mission is our dedication to social responsibility and community impact. Beyond our core products and services, we have been proud to contribute our time, skills, and resources to support local initiatives. In commemoration of our milestone anniversary last year, we proudly donated an additional £100k to local charities alongside our ongoing support for Maggie’s, our official charity partner.

“Looking ahead, Swansea Building Society is poised to navigate the complexities of today’s economic landscape with confidence. Our strategic focus on digital transformation underscores our commitment to adaptability and innovation, ensuring our members experience continual enhancements in our products and services. The sustained growth and profitability we’ve experienced in recent years will enable us to make strategic investments that benefit both our current and future members.”

Lucia Osmond, Centre Fundraising Manager, Maggie’s, said:

“We extend a massive thanks to Swansea Building Society and are so grateful that the Society has extended its support of our charity for a third year. Our centres now cover the whole of Wales, but we cannot do what we do without this kind of support. So, thanks again to the Society team and its members for their continuing generosity.”

The Society achieved double digit growth in its total assets, mortgages, savings and capital last year despite the difficult economic environment.

For the year to December 31, 2023, total assets grew by 15% driven by mortgages and savings growth of 16% and 15% respectively. Total assets increased by £77.2 million to £607 million, savings balances increased by £72.6 million to £565.5 million, while mortgage balances grew by £66.9 million to £477.8 million. The Society’s mortgage growth was driven by gross mortgage completions of £120.1 million, another record, beating the previous highest set in 2021.

The Society’s growth was supported by record profits before tax of £6.2 million, beating the previous record of £5.4 million achieved in 2022. This increased the Society’s capital reserves to £39.8 million. This is vitally important to the Society, as it provides greater reserves to support members achieve their financial goals.

Swansea Building Society remains one of the few financial institutions in the UK that receives no wholesale funding or support from the Bank of England in the form of cheap funding. Its balance sheet is funded entirely by customer savings balances and its own capital reserves built up from retained profits over many years.

Research

Economic confidence among finance professionals hits highest level since first half of 2023 

  • Although accountants have become more positive about the economy for the first time since Q1 2023, concerns about costs persist   
  • Global concerns about operating costs rose, as did uncertainty around geopolitical tensions and talent acquisition challenges
  • UK SMEs have experienced a similar buoying of confidence, but still face a tough economic landscape to navigate

 

Accountants and finance professionals are more confident in the global economy than they have been since early 2023.

 

The latest ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) Global Economic Conditions Survey (GECS) saw a moderate increase in confidence to put the index just above its historical average. Add in small increases to the New Orders and Employment indices – both of which are slightly above their averages – and a positive picture emerges of a gradually improving economic outlook. That said, there was a small decline in the Capital Expenditure Index, which remains below average.

 

Encouragingly, there were gains in confidence in most regions. The rise in Asia Pacific was the third largest on record and may reflect growing confidence in the resilience of the US economy, signs of improvement in the Chinese data and wider global economy, and perhaps rising optimism that Japan may finally be exiting from its decades long battle against deflation. The moderate rise in confidence in Western Europe also suggests that growth may be gradually improving from the weakness of recent quarters.

 

On a less positive note, global concerns about increased operating costs rose, although they remain below their Q3 2022 peak. Interestingly, concerns about costs eased again in the advanced economies of North America and Western Europe while remaining elevated by historical standards. By contrast, cost concerns rose noticeably in Africa, Asia Pacific, and South Asia.

 

Additionally, Q1 2024 responses from the Global Risks Survey section of the GECS report demonstrate how the ripple effects of economic uncertainty have been exacerbated by rising geopolitical and talent scarcity challenges. Respondents across all sectors and regions said that they are feeling the impact of talent retention risks, with numerous respondents describing the skills shortage as an epidemic. Cybersecurity is also viewed as a significant threat, especially with advancements in generative AI making ransomware and other cybercrimes increasingly easier and quicker to carry out.

 

Jonathan Ashworth, chief economist, ACCA, said: “The survey points to some improvement in global growth. Nevertheless, while encouraging, it is no time to celebrate just yet, with the global economy facing many risks and challenges and still set for below average growth in 2024. Moreover, the elevated level of concerns about costs suggests that the major central banks should proceed very cautiously with any monetary easing.”

 

Specifically discussing the economic backdrop for UK SMEs, Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “Confidence among UK SMEs increased quite materially in Q1 2024 and is only moderately below its historical average. The New Orders Index declined but is close to its average. The Capital Expenditure Index increased sharply for the second consecutive quarter and is now just above average, but the Employment Index declined again and looks weak by historical standards.

 

“Overall, the broad trend of the key activity indicators (save employment) over recent quarters points to some improvement in the economic backdrop for UK SMEs. Nevertheless, some of the early indicators of corporate stress increased in Q1. Worryingly, problems securing prompt payment, problems accessing finance, and concerns about customers going out of business all rose and are above their historical averages. This does highlight that businesses need to review their finance plans.”

 

Susie Duong, senior director of research and thought leadership at IMA, said of the report: “The continued improvement in confidence in North America, and the rise in the other indicators, likely reflects growing optimism that the US economy is on course for a ‘soft landing’ or perhaps no landing at all in 2024. That would clearly be welcome news for businesses, although it means we are likely to see less monetary easing by the Federal Reserve this year than investors expected a few months ago.”

 

Read the full report here.

 

Visit ACCA’s website for more information.

Business News, News

Westcon-Comstor reports FY22 financial results

Revenue up 11.8% to US$2 890.4 million following demand for all technologies in the Westcon International portfolio

LONDON, UK – 24th May 2022 – Westcon-Comstor (Westcon International) reported its FY22 earnings results earlier today. Total net revenue was up by 11.8% to US$ $2.89 Billion driven by strong demand and market share in its cybersecurity portfolio, networking and hybrid infrastructure offers and its remote access and cloud collaboration solutions which were deployed in new flexible working environments.

EBITDA profit increased by 52% to US$68.1 million (FY21: US$44.8 million) with gross margins averaging 11% globally. Westcon International’s gross profit increased by 9.6% to US$319.0 million (FY21: US$291.0 million) supported by strong results in both Europe and Asia-Pacific.

“Two years ago, our company demonstrated strong resilience in the face of the pandemic and the FY22 results we announced today illustrate our ability to not just sustain strong momentum but to go beyond and adapt and win in a rapidly changing market”, commented David Grant, CEO of Westcon-Comstor.

“Our focus on portfolio expansion with software and subscription-based solutions has helped us to not only record double-digit, organic revenue growth– despite material product supply constraints– but to drive unprecedented EBITDA improvement as well. It’s a true testament to the hard work of our teams across all operations, who have performed exceptionally well this last year.”

Westcon-Comstor announced that demand for its solutions continued to climb, coupled with supply constraints and chip shortages, its backlog of orders increased over 300% (from US$261 million for FY21 to US$824 million for FY22.)

“Multi-year investments we’ve made in business automation and digital tools are paying dividends as well. Our focus on Solutions Lifecycle Management and building Flexible payment solutions helped us to ensure that over 50% of our gross revenue in FY22 was recurring; we see that percentage growing as we go into FY23”, added David Grant.