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The Deloitte CFO Survey: 2011 Q4 results
Priorities for 2012: Cash and costs
The fourth quarter’s Deloitte CFO Survey, published on 3rd January 2012, provides us a unique insight into UK corporates’ strategies for 2012 in response to the ongoing macroeconomic and financial turmoil.
Here are the key findings:
- The biggest concern for UK CFOs in 2012 is the risk of a break-up of the euro. CFOs attach a 37% probability to one or more members of the Single Currency leaving the euro in 2012.
- CFOs are pricing in a UK recession and expect the economy to remain weak for a prolonged period.
- 87% of CFOs believe this is a bad time to be taking additional risk onto their balance sheet.
- The profits cycle is turning. 70% of CFOs expect corporate margins to decline in 2012.
- The major priorities for large corporates in 2012 are reducing costs and increasing cash flow.
- Financial stress is affecting the supply of credit to large corporates. Credit availability has deteriorated at the fastest rate since the credit crunch in September 2008.
- Despite the risks, CFOs see opportunities to expand market share and acquire assets at discounted valuations.
Read the full report and an executive summary: Priorities for 2012: Cash and costs – 2011 Q4 results
About the Deloitte CFO Survey
The Deloitte CFO Survey, launched in 2007, is a quarterly survey of Chief Financial Officers and Group Finance Directors of major UK companies. Over 300 CFOs, mainly from FTSE 350 companies, have joined the CFO Survey panel. The Survey captures shifts in UK CFOs' opinions on valuations, risks and financing and has become a benchmark for gauging financial attitudes of major corporate users of capital.
The Deloitte CFO Survey has been widely quoted in the media and is firmly established with policymakers. The Bank of England has cited the CFO Survey several times in its publications such as the quarterly Inflation Report and the monthly Trends in Lending report. The findings have also been quoted in the minutes of the Bank's Monetary Policy Committee meetings.
For more information on the survey, please contact Ian Stewart, Chief Economist at Deloitte Research or Debapratim De, Assistant Manager, Economics and Markets Research.
Previous reports
2011 Q3 results: Corporates turn defensive
2011 Q2 results: Optimism falls
2011 Q1 results: Optimism down, risk appetite up
2010 Q4 results : 2011 outlook: CFOs planning for growth
2010 Q3 results: Cost control is still king
2010 Q2 results: Confidence dips
2010 Q1 results: Financial repair, economic uncertainty
2009 Q4 results: 2010: Optimism, opportunity, risk
2009 Q3 results: Caution rules
2009 Q2 results: No return to business as usual
2009 Q1 results: Amid the gloom, glimmers of hope
2008 Q4 results: Priorities for 2009 - Cash, confidence, costs
2008 Q3 results: Digging in for the Downturn
2008 Q2 results: The Hunt for Liquidity
2008 Q1 results: Corporates respond to the credit crunchs
2007 Q4 results: The credit crunch bites
2007 Q3 results: Inaugural CFO Survey
