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Over 80% of UK CEOs feel very or somewhat optimistic about the business landscape over the next 12 months, an increase from 67% in September 2024, according to data from EY.
According to the findings, 78% feel optimistic about revenue growth, 80% about profitability, and 77% about maintaining a competitive position in the next 12 months.
The survey found that UK business leaders plan to undertake transformation initiatives in the next 12 months.
This comes in the form of prioritising improving customer engagement and retention (45%), achieving sustainability targets (43%), and optimising operations through digitisation and productivity enhancements (43%).
However, UK CEOs acknowledge that their transformation approach needs improvement in certain areas.
Almost one-in-five (19%) said they need to increase the speed of transformation, whilst a similar number (18%) said they need to improve transformation outcomes through greater collaboration across functions and the c-suite.
Almost a quarter (24%) said cost and return on investment (ROI) is influencing its organisation’s approach to digital transformation initiatives.
Nearly all respondents (99%) said they expect to actively pursue transaction initiatives over the next 12 months of these, 62% said they will be looking at M&A, up from 40% in September 2024.
Three in five (62%) intend to pursue joint ventures or strategic alliances with third parties, and 45% say they will consider divestments, spin-offs or IPOs.
Silvia Rindone, UK&I managing partner for Strategy and Transactions, said: “Our latest CEO Outlook reflects a resilient and forward-thinking mindset among UK CEOs. However, with nearly a quarter citing cost and ROI as key factors in shaping their digital transformation strategies, it’s clear that businesses are seeking a balance between innovation and sustainable growth. The coming year will be crucial for organisations to refine their transformation approach and unlock long-term value.”
“With M&A activity set to rebound in 2025, driven by strategic imperatives, digital innovation, and a more favourable regulatory climate, business leaders must prioritise diligent, data-driven investment decisions to capitalise on emerging opportunities.”
