9 out of 10 of Ireland’s Best Managed Companies plan to expand in next year
Published 8 August 2012
UK identified as primary target for expansion as 80% plan to recruit
64% of Irish businesses believe austerity a positive for the Irish economy
9 out of 10 of Ireland’s Best Managed Companies have indicated that they plan to expand their business in the coming year, with the UK and Europe identified as the top locations. The annual survey of Irish companies who have been recognised as Best Managed by the Deloitte awards programme over the last four years years also found that 80% of respondents plan to recruit in 2012 while half aim to complete M&A activity in the next 12 months.
The findings show that optimism is on the rise among this group of indigenous Irish companies. Half of respondents observed an improvement in market conditions in the last 12 months, compared to 40% last year. Similarly, 74% feel more confident about the outlook for their company compared to 12 months ago.
The companies surveyed have been recognised as Ireland’s Best Managed Companies over the last four years by Deloitte. These winning companies have total revenues of over €10 billion and employ over 24,000 people, emphasising the importance of indigenous Irish companies to Ireland’s economy. With two weeks left to apply for this year’s Deloitte Best Managed Companies Awards programme, Deloitte is encouraging businesses from all over Ireland to log onto www.deloittebestmanaged.ie and register for the programme.
With regards to outlook on the economy, 43% of respondents believe that it will be the second half of 2013 before the economy returns to growth. Similar to the 2011 results, 31% of respondents indicated that improving consumer sentiment was the single most important factor in returning the economy to growth. This was followed by restoring credibility and integrity in the banking sector (24%), growth in exports (12%) and renegotiating the terms of the EU/IMF bailout (12%). In line with this, one third of companies identified lack of customer demand as the biggest challenge facing indigenous Irish companies. Availability of funding and the high cost of doing business were also acknowledged as considerable challenges for Irish companies. Interestingly however, the majority of respondent companies indicated that they are not experiencing difficulty in obtaining finance for working capital (69%) or capital projects (67%).
While 71% of respondents anticipate that the Budget in December will have a negative impact on their business, 64% think that on balance austerity is a positive thing for the economy in Ireland. With regards to support required from the Government, the initiatives which respondents would most like to see include increased pressure on the banks to lend, further tax credits for businesses and maximising public procurement opportunities for indigenous companies.
The entrepreneurial spirit was once again considered to be the biggest advantage indigenous companies in Ireland have, as identified by 55% of respondents (60% in 2011). This was followed by low corporate tax regime (21%) and the educated workforce (17%). The biggest disadvantage, as identified by over half of respondents was dependence on the Irish market, followed by the cost of doing business (39%).
Kevin Sheehan, Partner, Deloitte commented: “These findings provide great insight into the mind-set of indigenous Irish companies. In addition to their expansion plans over half of companies indicated that they are planning on engaging in M&A activity. This positivity and focus on growth is very encouraging, and is a characteristic that we have observed amongst the winners of the Best Managed Awards Programme over the last four years. Approximately half of respondents indicated that growth/increase in market share was currently the most important focus for their organisation. We are observing that Ireland’s Best Managed Companies are achieving this goal through the execution of sound and well thought out strategies. We’re encouraging like-minded companies to join the growing network of Best Managed Companies.”
With regards to improving the business operating environment, additional measures to attract inward investment, as identified by 55% of respondents, was deemed most important, followed by improved broadband access (13%).
For further information and details of how to enter the awards, visit www.deloittebestmanaged.ie. The closing date for entries is 24 August 2012.
To enter the Deloitte Best Managed Companies Awards programme, companies must meet the criteria listed below. Applications can be made online at www.deloittebestmanaged.ie.
Deloitte is encouraging indigenous Irish companies to submit their applications for the 2013 Best Managed Companies Awards Programme, in association with Irish Life Corporate Business. Now in its fifth year, the business awards programme will recognise quality companies across the island of Ireland that have demonstrated superior business performance. The winners of the Deloitte Best Managed Companies Awards will be announced in March 2013.
About Deloitte Best Managed Companies Awards
The Deloitte Best Managed Companies programme, in association with Irish Life Corporate Business, promotes and recognises excellence in Irish/Northern Irish owned and managed companies. It is the only awards scheme on the island of Ireland that considers a business’ performance from every perspective. Entrants to the programme will compete for this designation in a rigorous and independent process that evaluates the calibre of their management abilities and practices.
Programme sponsors are Irish Life Corporate Business, the Irish Management Institute and the Sunday Business Post.
International History of Best Managed Companies Programme
The Best Managed Companies Programme originated in Canada in 1993, where it has been run successfully ever since and is the country’s leading business awards programme. In addition to Ireland and Canada, the programme is also run in The Netherlands and Mexico.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
The information contained in this press release is correct at the time of going to press.
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