Rest of Europe recovering faster despite being hit harder from recession
Other EU countries have fared better than the UK in dealing with the recession, despite being hit sooner and harder, according to new research.
More than three quarters of Western European firms were feeling the affects on the global economy towards the end of 2008, compared to less than half of UK companies, figures revealed.
Despite this, the study, by Roland Berger Strategy Consultants, says 96% of UK firms said they expect falling or static sales in 2009, compared to 88% in Europe.
This month both France and Germany announced an end to recession and a return to growth, with their output growing by 0.3%, while the UK’s contracted 0.8% over the same period.
The study concluded: “This is due to a delayed strategic response at the helm of the UK’s largest firms and an ongoing reluctance to focus on cost control and liquidity management.”
Klaus Kremers, Restructuring Partner at Roland Berger, said: “The research demonstrates that UK firms have been far slower than their European rivals to cut back costs and place liquidity management at the heart of their recession coping strategy.”
The International Restructuring Survey takes into account firms with a turnover in excess of £250m, and data is sourced from interviews with board level execs, including 100 UK companies.
Bill Upton, Restructuring Partner at Roland Berger, said: “We are far from out of the woods yet, and despite companies now looking ahead nervously to 2009/10 year end results, very few have adjusted plans to match the prevailing poor economic conditions.”
Del.icio.us
StumbleUpon
Facebook
Digg
Comments 0