Finance heads expect recession in UK within a year: Stocks to explore

Highlights

• Four out of five financial heads at top global businesses expect the UK to fall into a recession withing the year, according to Deloitte.
• As per the latest survey, getting credit would also be comparatively costlier than any time since 2010.
• CFOs at this point believe equity to be relatively more attractive than corporate bonds, which was last witnessed through the credit crunch of 2009.

Four out of five financial heads at the top global businesses expect the UK to fall into a recession within the year, a recent survey suggests. An economic collapse was projected by 78% of the senior executives who participated in the study conducted by audit giant Deloitte in its third quarter UK chief financial officer (CFO) survey.

As per the survey, getting credit would also be comparatively costlier than any time since 2010, with 56% of the finance heads rating credit as expensive and 39% saying that new credit is not easily available.

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According to Deloitte, the pressure on financial markets has gone up with the release of September's mini-budget announcements, which happened nearly midway through the survey phase.

The CFOs who were surveyed post the mini-budget announcements predicted significantly elevated interest rates and were further prone to report raised costs of credit as compared to the ones who were surveyed before. CFOs at this point believe equity to be relatively more attractive than corporate bonds, which was last witnessed through the credit crunch of 2009.

With the latest Deloitte survey reaffirming the fears of a recession in the UK, investors may keep an eye on the performance of the below LSE-listed stocks. 

Nanoco Group plc (LON: NANO)

The annual return of the company engaged in the development and production of quantum dots, Nanoco Group plc, stands at 77.41% as of 17 October. On a YTD (year-to-date) basis, the return presently stands at 87.53%. NANO shares were trading at GBX 37.50 on Monday, seeing a dip of 2.34% at around 11:40 AM (GMT+1). The market cap of the firm stands at £123.81 million at present. With a turnover (on book) of £32,367.33, the EPS (earning per share) of the group currently stands at -0.01.

Telecom Plus plc (LON: TEP)

The annual return of the company functioning as a utility warehouse in the UK, Telecom Plus plc, stands at 71.82% as of 17 October. The YTD return, on the other hand, stands at 33.04%. TEP shares were trading at GBX 2,110.00 on Monday, seeing a rise of 0.72% at around 11:45 AM (GMT+1). The market cap of the FTSE 250 firm stands at £1,662.21 million at the time of writing. With a turnover (on book) of £130,174.80, the EPS of the group currently stands at -0.45.

RPS Group plc (LON: RPS)

The annual return of the international professional services company, RPS Group plc, stands at 70.81% as of 17 October. Besides, its return on a YTD basis has reached 77.71%. RPS shares were trading at GBX 220.00 on Monday, seeing a hike of 0.46% at 11:45 AM (GMT+1). The market cap of the firm stands at £607.75 million at present. With a turnover (on book) of £8,124.60, the EPS of the group currently stands at 0.02.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.