More UK firms expect growing revenues from global markets

THE number of UK companies expecting the majority of their revenue to come from international markets has doubled in the last two years, new findings have revealed.

The Santander Trade Barometer found 28 per cent of British companies now expect more than half their revenue to come from international markets in the next 12 months – twice what it was in 2022.

Despite prevailing economic headwinds, over a quarter (28 per cent) of domestic businesses are considering expansion in the next three years – the highest level in four waves of the Trade Barometer.

This is in line with broader global trends, with many businesses in the US (47 per cent), Spain (35 per cent) and Poland (39 per cent) also weighing up expansion overseas.

Almost a third (30 per cent) of the UK businesses surveyed said they are very confident their business will grow in the next three years, up from 22 per cent in autumn 2023. Overall, three in four businesses say they are confident about future growth prospects.

Jane Galvin, head of corporate clients for Santander UK, said: “The latest wave of the Santander Trade Barometer shows that despite a spate of economic challenges, UK businesses are increasingly optimistic about their growth potential.

“Businesses are embracing ESG considerations as integral to their strategies, reflecting a broader shift towards sustainable practices, an encouraging sign for the future of our economy.”

Despite the growth in confidence, challenges remain.

Inflation is still viewed as the single greatest economic challenge for UK business, with 48 per cent of UK businesses stating that it is currently a risk for business growth in their organisation, compared to 40 per cent in the USA, 37 per cent in Spain, and 47 per cent in Poland.

Lord Offord, Minister for Exports, Department for Businesses and Trade, said: “It’s great to see business sentiment is on the rise and more and more companies are seeing the benefits of trading internationally.

“We’re backing British businesses by knocking down trade barriers, signing new trade deals, giving expert advice via our Export Support Service, and funding through UK Export Finance.”