Majority of North-west businesses back to pre-pandemic revenues

The majority of medium-sized businesses in the North-west have returned to trading at pre-pandemic revenues, according to research by business advisory group BDO.

After seeing sales fall sharply two years ago, analysis by BDO finds half are performing at the same level as before the pandemic, while a quarter have increased sales.

Ed Dwan, partner and head of BDO in the North West, commented:

“To see such a high number of companies return to pre-pandemic revenues demonstrates the resilience and ambition of mid-sized businesses in the region.

“However, the fact remains that the economic landscape is still fraught with challenges – some unique and some very much intertwined with the pandemic. Unsurprisingly, COVID-19 ranks as the number one issue that has adversely impacted businesses in the last two years. As such, the culmination of challenges is leading many to relook at finance options, overhaul their supply chain and pause investment in the business.”

Despite the recovery now that Covid-19 restrictions have receded, BDO also reported on the key challenges facing businesses, highlighting the continued economic uncertainty in the global economy and how that was being felt by firms in the North-west. Nearly of respondents to BDO’s research (31%) warned that staff shortages were threatening growth plans over the next three months. Rising energy costs and instability arising from the Russian invasion of Ukraine were also adding cost pressures on organisations in the region.

A further 28% of businesses also reported struggling to support employee wellbeing, however, BDO’s research also revealed the efforts businesses were making to support staff in the face of rising living costs. 44% of respondents reported increasing wages in line with inflation, with many also offering benefits including subsidised travel to work schemes, childcare support and free meals while in the office to help recruit and retain staff. Dwan added:

“With staff shortages the biggest threat to North West businesses in the next three months, the task of retaining talent has never been more pronounced. While prioritising issues, such as employee wellbeing, is proving difficult in the current climate, regional businesses are digging deep to provide as much support as they can – whether that’s through wage rises in-line or above inflation, or one-off bonuses – as the cost of living crisis continues to bite.”