Two-thirds of firms in Wales are anticipating becoming more profitable this year against a backdrop of improved macroeconomic conditions, shows new research from Lloyds Bank.
The data revealed the top three areas where firms are focusing this year, with half (50%) concentrating on developing their business, nearly a third (29%) on investing in energy efficiency measures and more than a quarter (26%) increasing wages for employees.
Many are also looking at ways to ensure they have a healthy cashflow, with more than a third (36%) of firms planning to keep a closer eye on costs over the next 12 months.
The research also shows that businesses are setting themselves up for growth, by building teams to support new opportunities, with almost half (46%) expecting to hire more staff in 2024.
With the expectation of inflation continuing to fall, more than two thirds (69%) of firms are confident that they will see their business become more profitable this year in comparison to 2023.
Moreover, almost three quarters (74%) also expect their revenues to increase. Of these almost a quarter (22%) anticipate growth of 5% to 10%, with more than one in ten (12%) are predicting growth of between 11% to 20%.
Sam Noble, regional director for Wales at Lloyds Bank Commercial Banking, said: “After a challenging 2023 it’s encouraging to see Welsh businesses making plans to grow and develop in 2024. It’s apparent that the recent fall in inflation and stabilisation of interest rates are helping to create an environment where Welsh businesses feel more confident to make the investments needed to grow, whether that’s growing their teams or funding measures to become more energy efficient in future.
“If businesses in Wales continue to implement strategic growth plans and take the time to carefully manage their cashflow, they will be able to benefit from new opportunities and tackle any headwinds they may have to navigate in the year ahead.”
