Member Article

"Remarkable" growth in Yorkshire's tech sector

Yorkshire tech firms are all set for a stellar year according to new research by Barclays.

Barclays’ Fast Growth Tech survey questioned owners and CEOs of UK tech firms, and found that Yorkshire’s ‘bright lights’ are feeling confident about delivering a stellar year of growth in 2015.

The research, independently commissioned by Barclays’ Technology, Media and Telecoms team revealed that on average, businesses surveyed predicted that they will grow by 10% over the course of the year - nearly four times faster than the UK’s GDP forecast for 20152 (2.6%).

The research showed that two thirds (65%) are expecting their business to grow by up to 10%. Furthermore, 23% are expecting growth between 10% and 20%.

Respondents were even more positive about the outlook for 2016, with the average firm expecting 14% growth on 2015, with 13% of firms predicting growth to top 20%.

Nearly half (48%) of all Yorkshire tech businesses surveyed agreed that the Government provides support in enabling them to grow. When asked about the financial challenges the business would face in 2015%, managing cashflow (23%) was the biggest concern for respondents overall.

Debbie Mullen, Barclays head of Corporate for Yorkshire, said: “These remarkable growth predictions reveal the optimism and drive of Yorkshire’s tech sector.

“The fact that many firms are expecting further growth in 2016 shows that this trend isn’t transient and Yorkshire is a real launch pad for innovative tech businesses.

“Investors are seeing the UK as an international talent magnet and a platform to grow or launch their business for a number of compelling reasons, including the culture, light-touch regulation, supportive Government policies and access to finance.”

The research quizzed firms which have seen growth in the last year of up to 10%, 10-20% and over 20%.

“The findings revealed that the fastest growing firms with the lowest turnover of those surveyed (£3-5 million) have their own distinct characteristics, which differed to businesses with more modest growth.

This was posted in Bdaily's Members' News section by Clare Burnett .