Henley: HW still positive as economy still growing

HW, a leading firm of chartered accountants in the Thames Valley, and HSBC, one of the world’s largest banks, co-hosted an event entitled After the Boom, which attracted 52 delegates, from all over the region to the River & Rowing Museum, Henley on Thames in June.

Keen to understand the audience’s views on key topical subjects, a survey showed that 65% of those questioned said they did not believe the present Government is best placed to direct the UK economy; and 75% said they believe a UK recession is a strong possibility. However, whilst confidence in the economy may be running low, the delegates listened and debated with interest to the presenters who gave helpful tips on how to plan ahead and even prosper in a turbulent economy.

David James, professor of marketing from Henley Management College, gave an interesting insight as to where businesses should be focusing their resources. He commented: “Let’s talk ourselves out of a recession. It is time to be proactive and aggressive; although growth has slowed down to 1%, the UK economy is still growing. It is time to get closer to your customers, establish a market-driving philosophy and use technology to build a customer-centric business.”

HSBC's top UK economist, Mark Berrisford-Smith, stated: ”The UK economy has deteriorated sharply in the past two months. The credit squeeze is biting, house prices are falling, and consumer sentiment sagging. Business surveys suggest that growth has all but stalled. The Bank of England faces a tough challenge in dealing with the present surge in inflation at a time when the economy is weak, and hopes of imminent interest rate cuts have been all but dashed. The next 18 months are likely to be tough."

Charles Whelan, HW's leading corporate financier for the Thames Valley, concluded: “Great deals continue in the M&A markets. Although the number of deals in Q1 in the South East is down in comparison with last year, the figure is still in excess of 1,000. It is a good time to buy weaker businesses as prices have become more realistic but strong businesses are still achieving sums beyond their expectations. Whilst banks are naturally being more cautious, they still have money to lend and private equity still has money to invest.”