More Welsh firms are expecting to increase profitability in 2025 than they did entering this year, according to new research from Lloyds.
Its business barometer shows that more than three quarters of firms (79%) are confident they will be more profitable in 2025, up from 69% polled in December 2023.
Moreover, 73% of businesses expect to see their turnover increase in the year ahead. Nearly a third (32%) of these expect to see their revenue rise by between six and 10% over the next 12 months, with over a quarter (26%) expecting it to grow by even more.
While general revenue and profitability growth is firms’ top priority at 55%, 43% said they will be targeting upskilling their staff and 33% said improving their productivity. One in six (17%) will be aiming to enhance their technology – such as automation or AI – while a similar proportion (18%) are aiming to improve their environmental sustainability.
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To support their goals, more than a third (35%) will be investing in staff training, while 29% plan to invest in research and development (R&D) of new products or service lines.
Sam Noble, regional director for Wales at Lloyds, said: “Welsh businesses are looking ahead to the new year and setting out ambitious plans. While it’s still an uncertain landscape, these will help them achieve their growth goals and put them on an even stronger footing to weather any headwinds. As they put their strategies into action, we’ll continue to be by their side with our support.”
