According to ADVANCE — the magazine produced by the Times Group in partnership with ADS (the trade organisation for the UK aerospace, defence, security and space sectors) — research undertaken by Wyelands Bank (set up to help small and medium-size businesses) shows that 59% of UK mid-size aerospace manufacturers (those with turnovers between £10 million and £300 million) have faced challenges raising finance, while 53% say accessing finance is more difficult now than five years ago.

Iain Hunter, CEO of Wyelands Bank (www.wyelandsbank.co.uk), said: “Our research shows that UK mid-size aero-space manufacturers have faced considerable challenges in raising finance, and that the situation is getting worse, not better.

Moreover, without greater access to finance, manufacturers will not be able to trade, grow and create jobs. Helping them to unlock growth along the manufacturing supply chain would help to tackle the UK economy’s productivity challenges.

“Mid-size firms generate more growth and create more jobs than their larger or smaller peers, but they are often neglected by banks and other providers of financial services.

“Each aerospace firm interviewed said that the difficulties raising finance meant they had missed out on an average of £17.7 million in revenues and an average of 37 new contracts, which would have enabled them to create 41 new jobs.”

The Wyelands Bank’s research also shows the preference for debt financing over equity funding among UK mid-size aerospace manufacturers, with 76% of those asked saying they would prefer not to consider giving up equity to raise finance.

According to the business advisory firm BDO, medium-size businesses have delivered revenue growth of 32% and profit growth of 45% over the past five years.

In contrast, FTSE350 companies saw their revenues shrink by 0.6% and profits fall by 40% in the same period; small-business revenues fell by 2%, although profits rose by 6%.