South West businesses are more confident about their prospects for the next 12 months than they were a year ago, despite the continuing Eurozone debt crisis and sluggish economic recovery.

That is the verdict of a survey conducted by Beacon, the South West peer-to-peer business network that has been relaunched this week having been taken over by Plymouth University from the South West RDA.

Beacon was first set up in 2003 as a way of identifying and bringing together top performing businesses to share best practice and boost the economy.

It is now being strengthened as a cornerstone of the Growth Acceleration and Investment Network – known as GAIN.

GAIN was founded last year by Plymouth University, Plymouth City Council and Tamar Science Park to accelerate the creation, growth and investment in high quality businesses and ideas to create wealth and jobs in Cornwall, Devon and Somerset.

The Beacon survey was conducted in December and asked Beacon businesses across the South West about their performance over the last 12 months and their outlook for the future.

The results were announced at the official relaunch of Beacon, attended by more than 50 regional business leaders at the Tamar Science Park in Plymouth on Wednesday (January 18).

They showed that 39% of Beacon businesses who responded were more confident about their business prospects now than they were a year ago, an increase of 12%.

More than two-thirds – 68% – said turnover had increased in the last 12 months and 54% had taken on more staff. Over half, 55%, said profits had increased to some extent, while 20% said profits were up significantly

Looking ahead, 60% expect to increase their turnover, 63% expected to increase overseas orders and 48% predicted an increase in domestic orders over the next 12 months.

But fewer (36%) expected to increase staff numbers compared to a year ago (58%) and more than a quarter (27%) expected to scale back on capital spending, reflecting a decrease seen over the last year.

Sue Baker, head of network development at Beacon, said: “Despite the depressed macro-economic picture it’s very encouraging to see such resilience among Beacon companies.

“Beacons have a track record of success so we would expect them to be in a better position to exploit opportunities and grow, and that’s why we are enhancing what Beacon has to offer. We’re strengthening Beacon’s links across the region as part of GAIN, and we’re launching a Beacon Pathfinder programme aimed at smaller businesses who aspire to join.”

Julian Beer, Pro-Vice Chancellor at Plymouth University, said: “Beacon is a fantastic network that proves its value to member businesses time and again, so we weren’t prepared to stand by and watch it fade with the demise of the RDA.

“By bringing Beacon under the wing of GAIN and the University it will open even more opportunities for Beacon members while preserving its unique attributes as a cross-sector peer-to-peer network that adds real value to our economy.”

This week’s launch event heard from a founding Beacon member TJ International, the award-winning Padstow-based book manufacturer which turns over £12 million a year and employs 125 staff.

Managing director Angus Clark said: “We were one of the first companies to become Beacon members and the experience has been extremely beneficial in terms of knowledge, contacts and generally raising the bar on quality.

“Through Beacon I’ve visited some of the most successful businesses in the UK and met some of the most successful business people, right here in the South West. And because Beacon is not industry or sector specific members are more open to sharing information and opportunities compared with other networks.”

Also addressing the event was Geoff Harding, the Bank of England’s deputy agent for the South West, who gave an overview of the current economy and likely trends in the future.

The Beacon network now comprises 234 independently validated companies turning over £2.6bn and employing 31,000 people in the South West across all sectors. It is delivered and hosted by Tamar Science Park on behalf of Plymouth University.

For more information about Beacon and Beacon Pathfinder visit www.beaconsw.org, or email [email protected]

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