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MOT Models Still Predict Continued Massive Growth

MOT Models

MOT Models – Q3 Economic Indicators Continue to be Very Positive

This is the third quarterly MOT Models bell-weather report on the economic outlook. The agency has always prepared these reports for internal and friends’ usage. What is somewhat unusual is that careful study of the patterns in the business seems to provide a means of spotting trends in the UK economy as a whole. These trends can be extrapolated from the mix of the size, type and number of inquiries from clients and the way in which the agency is able to respond to these inquiries.

In early March, the agency produced a very optimistic forecast for the coming months. At the time, this view was contrary to almost all other pundits including the IMF who had just cut their forecast for the UK recovery. In that report, it was predicted that the agency would see revenue growth over the entirety of 2013 compared with 2012 of 15-20% despite having a poor Q1. In the event, Q2 grew by 13.5% compared with 2012. Q3 was even more startling with growth of 24.4% compared with 2012. “Put simply, MOT has had its best summer for 6 years! Overall the summer months show a growth of 25.3% compared with 2012” says Director Mike Illes. He added “However, recent history has taught me to be cautious and I will continue to be so through to early 2014. If the recovery continues into the beginning of next year, it will start to look like it is sustainable and real”.

Although there were a couple of weeks in August when inquiries started to look erratic, the agency has continued to receive inquiries from clients at a higher rate than at any time since 2008 and is able to fulfil the client requirements in the vast majority of them. “This is an ideal situation for a model agency”, says Director Illes “as it confirms the high quality of the current model book is showing in the conversion of inquiry to booking”.

The number of bookings made in Q3 2013 was actually up by 18.4% compared with the same quarter in 2012.

“We are still targeting revenue growth of 15-20% year-on-year for the full year”, says Mike Illes. He added “The trends we are seeing would normally indicate an annualised growth for the British economy of in excess of 2.5% for the second half year”. Interestingly, the IMF has just today increased its forecast growth for the UK economy for the full year to 1.4% and its forecast for next year to 1.9%.

For further information call either Kate or Mike on 01442 863918