Smaller IT companies stockpiling cash the most

Smaller companies in the ICT sector have more cash stockpiled in their current accounts than companies of the same size in nine other major sectors, a study shows.

But such tech-led businesses aren’t just big potential spenders -- with an average, unmatched £690,000 in their current accounts, they’re also prudent savers, found Hampshire Trust Bank.

In fact, only accountancy firms trump the tech companies when it comes to business savings, which among the techies is typically £804,000, representing 54% of their total funds.

That balance looks set to increase, as almost half of those supplying ICT services said that since the UK’s Brexit decision, they had started to build a “cash buffer”.

This makes techies more responsive to the ‘leave’ vote than the national average of 38% -- the proportion of firms across the 10 sectors which the bank says has put more cash into their outfit since the June vote.   

But while accountancy and ICT SMEs have the largest savings pots, charities are the most active savers, investing 77% of total funds in savings, compared with an average of 57%.   

Those businesses stockpiling cash in their current account were advised to consider the opportunities to make more out of every £1 earnt, such as by moving it to their savings account.