More than 50 per cent of SMEs in the South West have seen increased or static profits over the last 12 months, according to a survey by business finance provider, Cattles Invoice Finance.

An in-depth study of 300 start-ups and SMEs revealed the South West as one of the best performing regions in the UK in terms of business performance. To add to this success, the region’s SMEs were also shown to be one of the most confident with an impressive 79 per cent expecting growth in the year ahead.

In contrast, results of the survey showed the North West as the least confident and worst performing region, with almost 70 per cent claiming they had experienced decreased or static profits.  London and South East SMEs were the most confident and best performing region, with 68 per cent seeing a rise in profits over the last year and 84% being optimistic for the future.

Adrian Chambers, regional managing director of Cattles Invoice Finance, commented: “Overall, this year’s annual survey reveals the healthiest picture of the UK’s SME economy since the study began five years ago.

“Not only are a large percentage of businesses showing healthy profit, many are also confident about continued growth over the next twelve months. Having said this, the survey has revealed some interesting regional comparisons and the difference between the South West and other regions is quite significant.

“This exercise has also allowed us to gain insight into the outlook of these businesses and understand how optimistic they are about the future. As well as the ongoing threats of increased competition, failing markets and lack of cash flow, SMEs in today’s market are also facing a rise in corporation tax of 3 per cent by 2009, announced in the Chancellor’s budget.

“This rise in tax and the changes to their business environment could have a detrimental effect on the growth and security of SMEs. Businesses need to address cash flow and efficiency to improve their chances of success.”

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