Two-thirds of Kiwi businesses doing alright
Revenue stays the same for most companies – up for some, according to MYOB survey…
New Zealand businesses are holding up surprisingly well despite the recession, according to MYOB Business Monitor, which found 70 percent have the same amount of work or more.
MYOB surveyed 1,400 local businesses nationwide, from sole traders to large businesses, and covered the whole range of sectors. The research was conducted by Colmar Brunton for MYOB in May and June. It found that two-thirds of businesses had the same or an increasing amount of work in the pipeline for the next quarter.
However, 35 percent of Kiwi businesses have seen revenue fall over the past year, but 22 percent had see an improvement and 38 percent had seen no change.
When it came to profits, 36 percent of companies have seen a profit fall, 27 percent have seen and increase and 33 percent have seen no change at all.
“According to our research, just over half of all businesses expect a recovery is still over a year away,” says Julian Smith, MYOB New Zealand general manager.
Also on a positive note, says Smith, most companies – 76 percent – don’t expect their economic position to get any worse in the next year, and a third expect more revenue. “These expectations are supported by the amount of work that businesses currently have in the pipeline.”
Smith adds that local loan also remain reasonable, with three-quarters of the 19 percent of companies that had applied to credit being granted it. In addition, most businesses are finding that their bills continue to be paid on time, usually in less than 30 days.
But there are regional variations, with Canterbury experiencing the softest recession – only 28 percent of companies have seen revenue fall. Auckland has been the hardest hit, with 45 percent of businesses being adversely affected.
As a final note, Smith says MYOB’s research revealed “a worrying lack of awareness” by many companies when it comes to the management, and monitoring of, cashflow.
“All businesses would do well to pay close attention to key indicators of business health if they are to take advantage of any opportunities for growth.”
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