Splash the cash, say interim managers

Businesses should resist the temptation to hoard cash and ignore growth opportunities, say senior directors and managers polled by interim management recruiters Interim Partners.

Research & development is seen as the business area most likely to suffer from such measures according to nearly half of respondents, up from just over a third last year.

Meanwhile, half of respondents said pursuing organic growth should be top priority, up from only 34 % last year, with the number believing cost-cutting or debt reduction should come first is done from 29% last year to 23%.

Doug Baird, managing director of Interim Partners, says: "The risk is that by creating large cash reserves, businesses might be forced to cut back on investment in essential assets like IT or machinery upgrades or research & development projects."

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