SME manufacturers in the UK are more confident around revenue growth, despite Brexit uncertainties, skills shortages and production cost rises.

So says a report by Worthing and Gatwick-based chartered accountants, tax and business advisers, MHA Carpenter Box.

Its annual survey report identifies opportunities and concerns facing UK manufacturing and engineering businesses.

Despite uncertainties over Brexit 69 per cent reported that they achieved revenue growth over the last 12 months and 78% remain positive about the future.

Brexit uncertainty is a significant barrier to growth and 94 per cent of respondents expect further increase in production costswhich are likely to be passed on to customers. Nationally 20 per cent of respondents said they have lost staff or are at risk of losing staff from the EU because of Brexit, although in the South East the figure is closer to 30 per cent..

MHA Carpenter Box partner Chris Coopey said: “The resilience and optimism of our manufacturers and engineers highlighted by our survey is a massive positive for the UK in this most uncertain of worlds.

“Despite the challenges they face the sector remains buoyant.

“Investment seems to be the key to the conundrum of skills shortages and rising costs.”