CFO Network Quarterly Update – June 2025

The second quarter of 2025 unfolded against a backdrop of geopolitical tensions, cautious fiscal policy, and signs of a cooling economy. The UK saw a slight contraction in GDP in April, following a stronger-than-expected start to the year. While interest rates have held steady, inflationary pressures remain stubborn, and recent trade developments have added further uncertainty…… But what does that mean for business in Yorkshire and the East Midlands? What is really happening in our region behind the headlines that we all hear every day?

CFO & Finance Director hiring activity across our region offers an important barometer of sentiment. Our quarterly review continues to combine data with conversations across our CFO network, advisors, and investors to provide a local pulse on the landscape.

We follow the international & national news and the stock market. Our data on appointments provides a strong balance to allow us to look at the short and long term, regional outlook.

Key Headlines from Q2 2025

• 10% decrease in CFO & FD appointments in Yorkshire & the East Midlands compared to the previous quarter
• 5% fewer appointments than in the same quarter last year
• 2% decrease in the rolling 12-month figure vs. the previous 12 months
• Volume of appointments and active searches within our work-in-progress remain consistent and reasonably positive

Gender Diversity

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This quarter, 29% of CFO and FD appointments were female – a return to the long-term average over the past three years. The previous quarter’s high of 39% remains the strongest balance we have recorded to date.

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The Hot Sectors

The sectoral distribution of appointments this quarter highlights continued strength in core industries:

• Manufacturing & Engineering – 31%
• Technology – 13%
• Healthcare – 10%

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Other Commentary

• Professional Services continues to grow as a source of senior finance hires, driven by consolidation, succession planning, and private equity activity across law, accountancy, and consultancy practices.
• Private Equity represented 23% of CFO appointments this quarter – the second consecutive quarter of reduced representation.
• Early years businesses are featuring more prominently in our data. Although our quarterly figures track full-time hires, our wider network highlights a steady rise in early-stage companies investing in senior finance talent — often via fractional FDs.

Interim Market

• Interim demand remains erratic and inconsistent, with no clear pattern emerging.
• The Employment Rights Bill is expected to accelerate conversations around interim and flexible engagement models.
• Hays plc reported a stronger temporary market than permanent placements in their results this month – although it remains unclear how applicable this trend is to the CFO market.

Our Outlook

It becomes more challenging each quarter to identify simple, consistent trends - but a few themes persist:

• Healthy volume of CFO and FD appointments continues - much of this driven by growth, new CFO positions, or upgrades in talent.
• Candidate volume is increasing in many processes - perhaps a sign of unease, unvested LTIPs, or broader personal uncertainty. This is also impacting employers attempting direct hires.
• Bank sentiment is positive. We see more established businesses - with the scars and experience of previous change - starting to act with greater confidence.
• The fractional CFO market is growing fast. Based on current run rates, we would not be surprised to see 30–40% growth in this segment during 2025.

2025/26 CFO NETWORK ANNUAL REPORT – YORKSHIRE & EAST MIDLANDS

CFO SURVEY – HAVE YOUR SAY

We are preparing the 2025/26 CFO Network Report for the Yorkshire and the East Midlands region – our fourth report and our most detailed yet. This is the most comprehensive review of the CFO and Finance Director landscape across the region, examining the individual leaders and the organisations they lead.

If you are a CFO or Finance Director working in these regions, we invite you to take part in our annual survey.  There are only six questions to answer, and it should only take a few minutes to complete.

Last year’s report reached a vast local and national audience and was used by investors, employers and finance leaders to influence many key decisions

The 2025/26 Report will be released later this summer, and analysis is already underway. Now’s your chance to be included.

Take part in the survey here

Thank you in advance for your help.