‘Nothing like earlier recessions’
Sep 10 2008 by Graeme King, The Journal
THE boss of accountants PricewaterhouseCoopers in Newcastle believes we will see recovery from the current economic downturn as soon as the third quarter of 2009.
Speaking as PwC unveiled impressive local sales growth of 8% in the year to June 30, Paul Woolston declared himself an optimist on the economic state of the region.
Going against the broad consensus that the economy is likely to be in the doldrums throughout 2009, Mr Woolston believes there is reason to look ahead with some confidence.
He also thinks we should look out for some businesses aiming to strike deals when the economy is at its lowest ebb – which he believes will come in the first quarter of next year.
Mr Woolston, senior partner of PwC in Newcastle, said: “I’m an optimist. I do feel we are talking ourselves down. There is no hiding [the downturn] but we are not in as bad a position as it might appear.
“I think it could be a tough first two quarters of 2009, then it will pick up. I also think there are people currently looking at deals, but who will want to come in at the bottom of the market – which I suspect will be in the first quarter of 2009. This does not feel anything like previous recessions. My view is, if you have a good underlying business, and reasonably good working capital, you are in good shape. If you don’t have a good business, and don’t have much cash, you may be struggling.”
PwC in Newcastle has 23 partners and directors and more than 320 staff and has recently hired an increased intake of 27 graduates.
Among the strongest performing parts of the North East business in 2007/08 were corporate finance, up by an impressive 67%, indirect tax services, up 32.4%, and HR employment taxes and pensions, ahead by 22.9%. Corporate finance deals include the institutional buyout of SMD Ltd by Inflexion Private Equity, the acquisition of 4 Projects Ltd by August Equity LLP and merger of Eddie Stobart Group with Westbury Property Fund.
He said: “Thanks to the tremendous efforts of our staff, we have achieved another year of significant growth despite a challenging economic climate. We see particular opportunity in providing advisory services to UK corporate, mid-tier and entrepreneurial private companies.”
The Newcastle office of PwC has won several prestigious awards in the past year, including North East Accountancy Awards Employer of the Year and a joint award with Newcastle City Council for Public Sector Team of the Year.
The team also won Dealmaker of the Year and Sale of the Year at The Journal Deal Awards.
