Revenue Improves and Work Increases Across Country

Revenue Improves and Work Increases Across the Country

Revenue is improving across the country, but the nation’s ‘engine room’ is stuck in a lower gear according to the August MYOB Business Monitor, released today.

The August 2010 MYOB Monitor, conducted by Colmar Brunton, has shown the first major resurgence in New Zealand business revenue since the global financial crisis, with more business owners across the country reporting revenue increases (31%) than those seeing a fall in revenue (26%) over the last 12 months.

However, Auckland is performing below the national average, with just 28% of business owners showing revenue rises over the past 12 months, with 26% reporting a revenue decrease. Although slower than the rest of the country, the performance of Auckland businesses is still markedly improved over the last quarter, with 37% of businesses showing a fall in revenue in the April MYOB Monitor.

MYOB New Zealand general manager Julian Smith says of the main centres, while all have shown improvement in the last quarter, the real success story in Wellington.

“Wellington businesses have gone from have the hardest time throughout the recession to being the star performers of the latest MYOB Monitor,” says Julian Smith.

“At the same time, Mainlanders are forging steadily ahead, with solid growth around the South Island.”

According to the August Monitor, 34% of Wellington businesses have seen an increase in revenue over the last 12 months, with 25% reporting a decrease. This is a significant turn-around from the April Monitor, when 37% of Wellington businesses reported a decrease and 39% in November 2009. 32% of Christchurch business owners reported a revenue increase in the latest Monitor.

In the regions, Taranaki outperformed any other area, with 53% of business owners showing increasing revenue and 12% seeing decreases, while in West Coast/Tasman, 43% of businesses saw revenue growth, with just 6% reporting a fall. Otago/Southland businesses are also performing well, with 37% of business owners reporting an increase in revenue in the last 12 months.

“As we look ahead, the picture is one of more solid growth, with businesses in most regions reporting increased work or sales in the pipeline,” says Julian Smith.

“Christchurch in particular will see a lift in economic activity in the next quarter, with 40% of businesses reporting they have more work or sales than usual in the pipeline.”

Mr Smith says some of the regions are also reporting a significant lift in business, with 59% of Taranaki businesses, 43% of businesses in West Coast/Tasman , and 37% of businesses in the Bay of Plenty reporting increased work or sales for the next quarter.

“Overall, this is translating into a more bullish view of revenue for the next 12 months right around the country,” says Julian Smith. “While 31% of businesses surveyed reported improvements in revenue over the last 12 months, 43% expect them to increase in the next 12 month period.”

Almost half (49%) of businesses in Christchurch expect revenue to increase over the next year, compared with 45% of businesses in Auckland and 39% in Wellington. Business owners in Taranaki are again the most positive about their prospects – mirroring their current sales pipeline – with 62% expecting increased revenue next year, followed by Tasman/West Coast on 54% and Nelson on 49%. In the central North Island, 41% of Waikato businesses expect to see revenue increases next year, 42% in Bay of Plenty and 40% in Hawkes Bay, while in the deep South, 40% of Otago/Southland businesses are expecting revenue to improve next year.

The MYOB Business Monitor is a nationwide survey of over 1,000 New Zealand business owners, across a range of small and medium businesses, from sole traders to mid-sized companies, and representing the major industry sectors. The MYOB Business Monitor is designed to research key areas of business performance, including profitability, cash flow and pipeline work, as well as business confidence.

ENDS

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