Business Performance

Headline Statistics (2012)

  • Sales & Orders – 57% of businesses reported an increase in UK sales and activity. This improvement was felt strongly in all but smaller businesses. There was also an increase in strength of performance and outlook in the overseas markets with increased sales activity and bookings.
  • Cash Flow & Investment Intentions – Four out of every ten respondents reported that their cash flow had improved in quarter two, 18% said it had worsened with the remainder of businesses seeing no change. Despite the pick up, this highlights the continued issue with late payments being experienced by businesses, with greater concern for smaller businesses.
  • Quarter two has also seen a significant increase in businesses operating at full capacity, with four in ten reporting themselves at full capacity, a rise from one third in the previous quarter. This increase was seen across both manufacturers and service providers.
  • Business Confidence & Economic Outlook – Business confidence in both profitability and turnover over the next twelve months has remained at the high levels seen previously, with a net of 55% of respondents expecting profits to rise over the following year and a net 65% predicting an increase in turnover.
  • Staffing, Skills & Pay – A net 27% of respondents had increased their labour force over the quarter, with 53% attempting to recruit – a significant increase on the previous quarter. 35% of all respondents expected their workforce to increase further over the next quarter. Of those recruiting the vast majority put it down to growth in business. The majority of those recruiting were looking to full-time as opposed to part-time (86% vs 26%) and permanent as opposed to part-time positions (45% vs 24%). 27% of respondents for quarter two said they had struggled to recruit suitable staff. Of businesses reporting difficulties, skilled and clerical posts and managerial skills were significantly harder to fill than clerical and unskilled roles. This was a particular issue with manufacturers, with 40% reporting difficulties in finding skilled staff, compared to 18% for services.70% of respondents anticipate giving a general pay award over the coming year, with 46% of total respondents anticipating giving a general pay award over the coming year, with 46% of total respondents saying this would be at inflation, 16% above inflation and three in ten businesses expecting no general pay award.

Source: DNLCC, Quarterly Economic Review, Quarter 2, 2014.

Turnover

Change in turnover in the last year Leicester City Leics County LLEP Area  Manufact’g Service Under 10 Staff 1 – 9 Staff 20-49 Staff 50-199 Staff 200+ Staff Urban  Rural
Increased 34% 43% 41% 54% 36% 33% 39% 43% 48% 51% 39% 45%
Stayed much the same 34% 32% 33% 27% 34% 36% 32% 335 29% 31% 33% 34%
Decreased 25% 19% 20% 18% 22% 24% 25% 17% 17% 16% 21% 18%
Don’t Know 7% 5% 6% 2% 7% 7% 5% 6% 6% 2% 6% 2%

Profits

Change in profits in the last year Leicester City Leics County LLEP Area  Manufact’g Service Under 10 Staff 1 – 9 Staff 20-49 Staff 50-199 Staff 200+ Staff Urban  Rural
Increased 32% 35% 34% 41% 31% 29% 32% 36% 37% 41% 33% 37%
Stayed much the same 33% 34% 34% 32% 34% 34% 36% 33% 31% 41% 34% 31%
Decreased 21% 23% 23% 22% 22% 26% 24% 21% 19% 16% 22% 24%
Don’t Know 13% 9% 10% 6% 11% 11% 8% 10% 13% 2% 10% 8%

Workforce Growth

Change in workforce size in the last year Leicester City Leics County LLEP Area Manufact’g Service Under 10 Staff 1 – 9 Staff 20-49 Staff 50-199 Staff 200+ Staff Urban  Rural
Increased 28% 33% 31% 31% 31% 21% 31% 37% 37% 38% 31% 34%
Stayed much the same 52% 54% 54% 53% 54% 59% 53% 54% 49% 41% 54% 46%
Decreased 19% 13% 15% 16% 15% 20% 15% 10% 14% 21% 14% 20%
Don’t Know 0% 0% 0% 0% 0% 1%

Recruitment

Recruited staff in last year Leicester City Leics County LLEP Area Manufact’g Service Under 10 Staff 1 – 9 Staff 20-49 Staff 50-199 Staff 200+ Staff Urban  Rural
Yes 57% 67% 64% 61% 65% 33% 62% 79% 85% 92% 64% 68%
No or don’t know 43% 33% 36% 39% 35% 67% 38% 21% 15% 8% 36% 32%