Welsh Enterprise Awards 2018

SME NEWS / Welsh Enterprise Awards 2018 15 , 40 per cent of middle market firms operating within the TMT sector believe that exiting the European Union without a Brexit deal will have an advantageous or favourable effect on their revenues, according to a newsurvey by the leading audit, tax and consulting firmRSM. 40 Per Cent Of Mid- Market TMT Firms Feel ‘No Deal’ Brexit Will Boost Revenues Of the 40 per cent, 6 per cent feel it would be advantageous and 34 per cent feel it would be favourable. A further 31 per cent of TMT firms view exiting the EU, having failed to negotiate a deal, will have no effect on their future turnover. Just 20 per cent feel it will harm revenues. 4 per cent believe it would have a catastrophic effect. This compared to 45 per cent of leaders in financial services and 43 per cent in construction seeing the most potential to benefit from a ‘no deal’ scenario. Conversely the consumer sector (35 per cent) see it as the most harmful. David Blacher, partner and national head of TMT at RSM said: ‘Mid-market TMT firms continue to be optimistic about their future prospects, despite continuing market uncertainty. Whilst that confidence is understandable considering how well the sector has performed, coupled with its future growth prospects, it is perhaps surprising how bullish they are when it comes to the effects of a ‘no deal’ Brexit. One of the reasons for this could be down to their view that come what may, a sector with such high growth potential, coupled with their ability to be agile, can offset the impending challenges and better adapt to the new environment. ‘What is of greater concern to TMT firms is the ever more challenging search for talent, both into London and the UK regions, as well as into more traditional overseas outsourcing locations. The status quo on recruiting and retaining talent continues to worsen. We’re seeing firms looking further afield into lesser known overseas locations in their bid to bridge that gap.’ The quarterly Brexit Monitor, conducted by YouGov prior to the EU leaders meeting in Salzburg on 19/20 September 2018, surveyed 325 mid-market business leaders, 51 of which operate in the TMT sector. David Blacher adds: ‘All eyes will now be on the EU summit in mid- October, described by Donald Tusk as ‘the moment of truth’. Many businesses will be hoping for some much-needed progress from both the EU and the UK.’