UK-quoted companies have tapped investors for £150 billion in new capital since 2008, representing nearly two fifths of the £399.3 billion they've paid out in dividends. This is according to new research from Capita Asset Services which says 2013 has seen the highest number of cash calls since 2010 as businesses progress from survival to growth.
Capita Asset Services forecasts that £11.6 billion will be raised by the end of this year, the highest annual total since 2009. It predicts that capital raising in 2014 will rise by nearly a third to £15 billion.
Justin Cooper, chief executive officer of 'Shareholder Solutions' at Capita Asset Services, comments: 'A bounceback in the amount of capital being raised by companies is not always a sign of health for UK plc. Companies tend to tap the markets either in times of growth, to finance investment and acquisitions, or in times of need, to improve liquidity and meet debt obligations.
'While Barclays’ (£6 billion) rights issue has clouded the picture and is another round of therapy rather than expansion, the growth in the number of cash calls in 2013 does point to a positive step forwards in FTSE companies’ recovery, as confidence in the economy improves, and firms begin to capitalise on stronger valuations to raise funds for investment.'