Annual Plimsoll Mood Survey Results

The annual Plimsoll Mood Survey never fails to throw a surprise or two. Our end of year survey gauges how business leaders are feeling heading into the next trading year,  and 2020’s survey results are the most surprising to date.

With the news cycle awash with apocalyptic stories of virus ravaged sectors and Brexit ready to pile on more pressures in 2021, we anticipated a broadly negative outlook from our survey of thousands of key business leaders.

However, more than half of the companies predicted the virus will have had no impact on their sales at all, with many predicting increases. 1 in 3 companies plan to hire more staff irrespective of trade deals, lockdowns or any other bumps in the road. A quarter of business leaders surveyed even intend to make an acquisition in 2021.

Having surveyed thousands of business leaders across all sectors of the UK economy, following is a breakdown of the key findings:

Over half of companies will see sales increase or stay the same

There is more good news than bad around UK PLC. While hospitality and retail are in dire straits as the public bounce between loosening and tightening of restrictions and many U-turns in between, other parts of the UK economy are powering ahead. In spite of the coronavirus and Brexit uncertainty, the following parts of the economy are doing very well:

Of course, it would be remiss not mention the damage caused by the pandemic to many in the hospitality and retail sector who have seen sales fall, in some cases into negative turnover. That said, the performance elsewhere should give cause for longer term optimism.

Almost a third of firms will employ more staff

A tsunami of job losses is predicted for 2021 - a headline we all have become used to reading in the past few months. The lockdown of shops, hotels, bars, exhibitions and countless other “in person” venues has decimated many jobs. The effect is felt equally in industries feeding into those sectors.

However, while the net loss of jobs across the UK economy could be sizeable, some sectors are adding roles. 30% of companies surveyed said they were looking to add staff to cope with demand in the coming year. The pattern mirrors the sectors experiencing high growth:

Clearly, hiring intentions in many of the worst affected sectors could change markedly as COVID-19 recedes. Even those sectors that intend to hire more staff will have to contend with Brexit and potentially, a much smaller pool of labour.

A quarter of companies will be pursuing acquisitions

When buying a company, the number of opportunities is often proportionate to the size of the crisis. As companies continue to battle the effect of the virus while planning for a messy Brexit, many otherwise good companies find themselves in trouble. 2021 could well be the year of the distressed acquisition.

Companies, and their owners, have shouldered enormous burden getting through the pandemic and it has left many exhausted financially. Undercapitalised companies are in desperate need of support and selling to new owners often secures the resources needed to ensure the company’s survival.

There has never been a better time to buy a distressed rival. According to our survey, almost a quarter of companies agree, with 23% saying they have concrete plans to go on the M&A trail. These are the sectors to look out for companies changing hands the most:

As 2021 evolves and economic conditions fluctuate, intentions to buy and sell companies could change accordingly. Companies that were open to sale could hold on if the clouds of the pandemic clear quickly in the New Year.

Plimsoll has surveyed the businesses around the UK economy to add human insight to sit alongside our unique analysis, which covers the financial performance, outlook and value of the key players in more than 1600 individual industries in the UK and further afield.

2021 could likely continue the theme of disruption and uncertainty we have endured throughout 2020. However, Plimsoll can ensure you have the best possible analytical insight possible to make the best possible decisions in these difficult times.

For more information about Plimsoll and our unique financial analysis, visit www.plimsoll.co.uk