LONDON: Britain’s smaller companies are hoarding cash and cutting investment, bankers say, a sign of business confidence starting to wobble as the government sets off down the uncertain path of leaving the EU.
Companies with revenue of less than £1 million ($1.23 million) expect to invest an average of £21,690 ($26,520) in their businesses in the next six months — a fall of 74 percent compared with July, Lloyds Banking Group said on Friday following the latest results of its six-monthly survey.
This is the biggest drop since the bank added the question about investment plans in 2015 to its long-running Business in Britain survey of small businesses.
“Businesses need to be careful that in cutting back on investment to boost resilience they do not put the brakes on too hard,” said Jo Harris, a managing director at Lloyds, one of Britain’s largest business lenders.
Sitting on cash could help companies weather any economic slowdown, but bankers say that reduced spending also threatens to dampen growth prospects for the economy.
The head of commercial lending at another major bank said the last time that he saw smaller companies hoarding money to a similar extent was during the 2008 global financial crisis.
The banker said companies were paying off overdrafts and other loans amid concerns that the economy may suffer after Prime Minister Theresa May seeks to begin the formal process of negotiating a divorce settlement with the EU later this month.
“Customers are nervous ... they are worried that as the news of Brexit negotiations begins to filter through then sentiment will dip,” the banker said.
Lloyds said economic uncertainty was identified as the main threat over the next six months, followed by weaker UK demand and political uncertainty.
Britain’s businesses and banks have largely defied expectations that the economy would suffer an immediate blow from the referendum result in June last year, but in recent weeks there have been signs of mounting concerns as the real Brexit process gets underway.
Aldermore Group, a specialist lender to small and medium-sized businesses, said a survey of 1,000 such companies conducted in the last financial quarter showed cash flow was their biggest concern.
About a fifth of companies said they missed an opportunity to expand their business because of a lack of available finance, Chief Executive Phillip Monks told Reuters.
Britain’s small companies hoard cash as Brexit looms
Britain’s small companies hoard cash as Brexit looms
Egypt’s non-oil exports rise 17% as trade deficit narrows
RIYADH: Egyptian non-oil exports increased by over 17 percent year on year in 2025, reaching approximately $48.6 billion, new figures showed.
Latest foreign trade indicators released by the country’s Ministry of Investment and Foreign Trade revealed the trade deficit narrowed by 9 percent over the 12 months, reaching around $34.4 billion, according to a statement.
This supports Egypt’s ambition to enter the global top 50 in trade performance, boost exports to $145 billion a year, and narrow the trade deficit.
It also aligns with the country’s efforts to streamline procedures, maximize the benefits of trade agreements, and protect local industry in line with international agreements.
The newly released data said: “Egyptian gold exports also saw a substantial increase, reaching $7.6 billion in 2025 compared to $3.2 billion in 2024, an increase of $4.4 billion.”
It further indicated that the largest markets for Egyptian non-oil exports in 2025 included the UAE, Turkiye, and Saudi Arabia, as well as Italy and the US.
The most important export sectors included building materials at $14.9 billion, chemicals and fertilizers at $9.4 billion, and food industries at $6.8 billion.
In October, Egypt’s credit rating was raised by S&P Global to “B” from “B-,” while Fitch reaffirmed its “B” rating, citing reform progress and macroeconomic stability.
S&P said at the time that the upgrade reflects reforms implemented over the past period by the country, including the liberalization of the foreign exchange regime, which boosted competitiveness and fueled a rebound in growth.
Prime Minister Mostafa Madbouly also said at that time that both rating agencies’ decisions signal confidence in the government’s reform agenda and its expected returns.
In September, Egypt’s Ministry of Planning, Economic Development and International Cooperation reported that the economy expanded 4.4 percent in fiscal year 2024/25, driven by a strong fourth quarter when gross domestic product growth hit a three-year high of 5 percent.
This reflects the impact of the more flexible exchange rate regime adopted since March 2024, which has helped stabilize the balance of payments and restore investor confidence.
