A survey by accountancy firm BDO has found that four out of five companies think the government is not providing them with enough information to adequately prepare for Brexit.

The business sentiment survey was compiled from more than 400 company responses. According to BDO’s managing partner, Michael Costello (pictured): “Almost 80% of companies are reporting inadequate information to allow them to prepare for Brexit.

“This is partly because the complications surrounding the negotiations are not yet widely understood. There is clearly an information gap and uncertainty. The sooner these are addressed, by the lead negotiators, the better.”

Despite ongoing uncertainty regarding Brexit, the BDO survey found that companies remain optimistic about their business activity and their operational profit.

Optimistic

BDO’s ‘Optimism Index’ has been tracking business sentiment on a quarterly basis since 2011. Optimism is down marginally from this point last year, slipping from 66.7 in 2016 to 65.9 in 2017, but still achieved a 15% improvement over the last four years. Mid to large companies and businesses in the services sector are the most optimistic, at 68.6 and 68.8 respectively.

Business activity slipped slightly back compared with this quarter last year but remains in very positive territory overall, said BDO. However, 80% of companies expect their employment levels to remain static this year. There was also a 5% drop in the number of companies expecting higher operational profits when compared with the same quarter last year.

With regard to pricing levels, a majority of companies (72%) surveyed indicate prices will remain static compared to the same quarter last year. Some 46% of respondents are projecting higher levels of activity, but this is a 7% drop from previous findings in 2016.

Costello said: “We are advising clients who may be affected by Brexit to analyse their supply chains and business strategy, so that they can isolate their exposure to the British market.”

“Business sentiment has a strong impact on investment and spending decisions so the fact that it is positive is very welcome. However, there is clearly an information deficit surrounding Brexit and that is certainly an area of major concern for many companies,”