UK-based businesses that export their goods and services to other countries are enjoying increased profit margins thanks to recent falls in the value of sterling, new research has found.
95 per cent of small and medium-sized enterprises (SMEs) that export their products internationally have seen their profit margins rise since the European Union (EU) referendum result, a study from American Express has found.
The average SME exporter has enjoyed profit increases of 16 per cent – while a further 95 per cent of firms have plans to upscale their export operations before the end of the year in order to maximise their export potential.
The study suggests that post-referendum uncertainty is not deterring UK businesses from international trade.
It also suggests that the weak pound appears to have helped rather than hindered many British-based firms that rely on overseas trade – but only to a certain extent.
American Express’ report also reveals that SMEs that import but do not export are ‘suffering’ in the wake of the fall in sterling.
As many as 61 per cent of such firms are being forced to push up their prices, while a third are planning further price hikes over the next year in order to make ends meet.
Despite this, however, the study found that businesses which rely on both imports and exports to keep their firm afloat ranked amongst the most confident of all SMEs surveyed.