Nearly 42 per cent finance leaders across Europe, Middle East and Africa (EMEA) plan to invest in the business if they see a strong business case in spite of the recent Brexit vote, according to a new report.

Oracle’s ‘Stepping into the Unknown’ study set out to assess how June’s EU referendum result and an uncertain future are affecting business strategies, as well as how these conditions are shaping companies’ expectations of their finance leaders.

Companies know they cannot afford to wait out today’s uncertainty if they are to remain profitable, and are leaning on CFOs to help them invest strategically and find success, the report said.

Finance leaders expect to see significant changes to their competitive landscape under these conditions. 40 per cent believe more organizations will struggle and go out of business, while a considerable 69 per cent expect there will be more M&A activity and consolidation.

Thirty per cent of organisations admit they did not expect the results of the EU referendum and are now playing catch-up. An even larger proportion (41 per cent) say their forward planning has since become more complex and uncertain.

However, while organizations accept that the future is uncertain they understand that an uncertain market is also ripe with opportunity and plan to capitalize on changing conditions where possible.  

Forty-two per cent say they plan to invest in the business if they see a strong business case, even if they are being more cautious, with almost one third (29 per cent) committed to making major investments. This is compared -to just 22 per cent that are restricting spending to the bare essentials.

Laurent Dechaux, vice president, Digital Finance at Oracle EMEA said: “Uncertainty doesn’t stop market disruption. If anything it opens up new opportunities for strategic movers. Some of today’s most successful companies launched in the wake of the 2008 financial crisis, jumping on changes in consumer habits and implementing processes that were agile enough to adapt as they grew.”

Leaning on the CFO

Companies are turning to finance leaders to help them identify and pursue opportunities in a post-Brexit market.

Fifty-three per cent of finance leaders say uncertainty has put finance in the spotlight, with 56 per cent saying their role now predominantly involves advising the business on achieving its growth goals. Similarly, 61 per cent say their role is more focused on forward planning than ever.

CFOs also recognize that a more uncertain environment demands better planning and greater flexibility. 48 per cent of finance leaders are planning for more potential scenarios simultaneously, and 57 per cent are spending more time on forward planning and forecasting than last year.

Middle Eastern business leaders understand that uncertainty doesn’t stop market disruption. If anything it opens up new opportunities for strategic movers. Some of the world’s most successful companies launched in the wake of the 2008 financial crisis, jumping on changes in consumer habits and implementing processes that were agile enough to adapt as they grew. – TradeArabia News Service