Small firms in Brighton and Hove have emerged as some of the UK's biggest euro enthusiasts.

Research by Parcelforce Worldwide revealed use of the new currency was highest in Brighton and the South-East, with 54 per cent using it compared to 51 per cent across the rest of the country.

Businesses taking part in the survey said there were significant benefits.

Forty-nine per cent said it made overseas trading easier, 29 per cent said it reduced costs and 12 per cent said it opened new markets Enthusiasm for the new currency was reinforced by the fact 45 per cent of those trading in the euro claimed it already accounted for more than half of their total export revenue.

Kerry Kyriacou, co owner of Bramble and Co in Brighton Square, said accepting the euro had caused no problems and was convenient for the firm's many European customers.

He said: "Working out the equivalent price in euros is straightforward. Some customers are a bit shy about offering to pay in euros but we have a sign in the shop and in the window showing the daily exchange rate, which is provided by Thomas Cook.

"Most Europeans we spoke to said the new currency had made travel a lot easier but the Germans and the Greeks said the change had led to large price increases in their countries."

According to Parcelforce, the key drivers behind the decision to embrace the euro included ease of use, price stability, savings on transaction costs and, for exporters, a fear of losing sales.

The 46 per cent of small businesses that did not trade in euros reported a mixed response to any future adoption of the currency by the UK.

More than half envisaged it would make the trading process easier and 28 per cent thought it would reduce costs.

Others were less enthusiastic, citing the potential increase in red tape and confusion among staff and customers as areas of concern.

Chris Kalla-Bishop, commercial director of Parcelforce Worldwide, said: "The results showed small and medium-sized businesses in Brighton and Hove are adapting to the currency with a pragmatic, business as usual approach. Our work with small companies has shown they consistently display the ability to tackle exporting challenges to grow their business."

Garry Parker, spokesman for the Federation of Private Business, agreed small businesses were displaying a sensible approach.

He said: "Whether the UK joins the euro or not, the currency was always going to impact on export businesses.

"It is no surprise small businesses are readily adapting to the new trading conditions. The survey highlights the inherent nature of the UK's small businesses to roll up their sleeves and get on with the job in hand."

Some of the biggest manufacturing
firms are increasingly in favour of the euro.

Two-thirds supported the single currency, up from just over half in the summer, according to the poll by The Manufacturer magazine.

Sixty out of of the 100 companies surveyed said the new currency should be adopted within two years.

A fifth said the UK should never adopt the euro, while most said the Government's "indecision"

was making matters worse.