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(From Financial Director)
Profitability on the up
UK corporate profitability has risen to 12.3% in 2003, up from 11.4% in 2002, according to National Statistics. Manufacturing companies recorded the highest net return in four years (8.6%), while services companies' profitability reached 15.5%. The ONS measure divides operating surpluses by capital employed.
www.statistics.gov.uk
Minimum wage fears
One-eighth (13%) of UK businesses are likely to suffer a significant loss of profits, or have to make redundancies, if the national minimum wage is set at GBP5 per hour, according to a survey by the ICAEW. Its research of more than 1,000 accountants suggests that more than half of businesses would suffer if the rate were set at GBP7 per hour.
Time to pay up