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MEDIA RELEASE// 11 DECEMBER 2013

The Executive Connection (TEC) today released their November TEC Confidence Index revealing 65% of business owners surveyed expect their revenue to increase over the next 12 months and 53% expect their profitability to improve, while 37% expect it to stay about the same.

“This quarter’s results again provide an invaluable insight into the key issues facing the small and medium business community, their general confidence about the Australian business climate and some of the ways these issues play out in different states,” Nikki Potter, CEO of The Executive Connection said.

The TEC Confidence Index is TEC’s quarterly Australian survey measuring the confidence of its members, Australia’s top performing business leaders.

“It’s interesting as we head into the Christmas/ New Year period that expectations around sales revenues over the next 12 months were optimistic when compared to our previous survey in August.

“65% of the surveyed CEOs and business owners around the country expect an increase, compared to 56% in the last quarter – this was more pronounced in larger businesses with 72% of those with a turnover of >$100m optimistic about what’s ahead for them and their businesses,” Ms Potter said.

“79% of these CEOs and business leaders from Western Australia are expecting an increase in sales revenues,” she said.

“This is another important insight for politicians, policy makers and regulators about the general feeling and mood amongst Australia’s business community and hints at the sort of year they are expecting in 2014,” she said.

Through its affiliation with Vistage International Inc., TEC members have access to over 15,000 business leaders and owners in 15 countries across the world.

The TEC Confidence Index can be accessed here: http://www.tec.com.au/resources/tec-confidence-index/

Media Contact: Andrew Bradley P: +61 (0) 403 777 137; E: andrew@holdfastcommunications.com.au

KEY STATISTICS:

Over the next 12 months, do you anticipate that your organisation’s sales revenues will increase, stay about the same or decrease?

  • 65% of respondents expect their revenue to increase over the next 12 months
  • 72% of those expecting increased revenue have a turnover of >$100m, and 79% were from Western Australia
  • Overall, 8% expect a decrease in revenue, and those with a turnover of $21m-$50m turnover were the least optimistic
  • 39% of those respondents from Queensland expect sales revenue to stay the same compared to 27% overall
  • See page 12 for further analysis

Over the next 12 months, do you expect your organisation’s profitability to improve, stay about the same or worsen?

  • 53% of all respondents expect their profitability to improve and 37% expect it to stay about the same
  • 59% of those with a turnover of <$1.5m, and 63% of those from Western Australia expect improved profitability in the next 12 months
  • Of those with a turnover of >$100m, 42% expect to see profitability improve and 46% expect it to stay the same
  • See page 14 for further analysis

Are your organisation’s total fixed investment expenditures likely to increase, remain the same or decrease over the next 12 months?

  • Overall, 44% expect their total fixed expenditures to stay the same and 44% expect it to increase
  • 49% of those with a turnover of $6-$20m and 53% of those from Western Australia expect to see an increase in expenditures
  • 26% of those with a turnover of $21m-$50m and 25% of those from South Australia expect a decrease in expenditure compared to 13% overall
  • See page 16 for further analysis

Over the next 12 months, do you expect your organisation’s total number of employees will increase, stay about the same or decrease?

  • 43% of all respondents expect their organisation’s total number of employees to increase over the next 12 months
  • 51% of those with $6m-$20m turnover and 45% of those from Western Australia expect to see an increase
  • 11% of all respondents expect employee numbers to decrease in the next 12 months
  • See page 18 for further analysis

-ENDS-