UK companies raised over £20bn in a year through share and debt issues, reveals accountancy firm Moore Stephens
UK companies fetched a net total of £20.3bn though share and debt issues in the year ended 30 September 2015, according to figures released today by accountancy firm Moore Stephens.
The £20.3bn figure, which refers to the total amount levied through new share and debt issues less the amount repaid on share buybacks and debt, represents a 42 per cent increase from the £14.3bn raised during the same period the year before. It is also the largest amount acquired by UK companies since the year ended 30 September 2009, when a net total of £49.7bn was raised.
By comparison, in the year ended 30 September 2011, UK companies obtained a net total of just £0.1bn through share and debt issues.
“Elevated fundraising in a growing economy should translate into higher investment,” said Phil Cowan, partner and head of corporate finance at Moore Stephens.
He continued: “Companies should be looking to expand whilst the economy is in relatively good shape. This increase in fundraising is an indicator of growing confidence amongst UK companies.
“Some companies will be focused on scaling up their business, increasing staff numbers or investing in new equipment, others will be looking at possible targets for acquisitions.
“A renewed focus on growth from UK businesses is very welcome, while the economy is not without its problems these figures show the recovery is on track.
“The last few years have seen somewhat depressed volumes of corporate finance activity in the UK, but this is a broadly positive indicator for the future.”
Moore Stephens pointed out that the figures indicate that UK businesses have maintained their investment plans, despite the slowdown in China.
Cowan added: “There have been concerns about how stuttering growth in China and other emerging markets is impacting the economy – particularly in mining and commodities but the fundraising by UK companies is showing a lot of resilience.”