A total 14.4 per cent of businesses managed to increase their profits despite of the recession in the first half of this year, the GRTU said today.

Announcing the results of a survey, the chamber said these businesses attributed their success to cost cutting, an increase in services, better products and investment.

However 61.2 per cent of businesses surveyed reported lower profits while 24.4 per cent said their situation was unchanged, GRTU Director-General Vince Farrugia said.

Those businesses which reported lower profits mostly blamed the financial crisis and lower consumer spending.

But in spite of lower profits 34.4 per cent still planned to invest more to increase the size of their business.

Only 6.8 per cent of businesses interviewed said they planned to close down. This was lower than in previous years reflected a sign of confidence, Mr Farrugia said.

62.8 per cent said they would retain the same number of employees.

The survey, among 250 businesses, found that 53.2 per cent had the same turnover as in the same period last year, 22 per cent reported a higher turnover and 24.8 per cent said their turnover was the same.

Asked about their outlook for the next six months, 33.2 per cent expected the situation to improve, 25.6 per cent said it would worsen and 41.2 per cent said they expected it to remain the same.

More than two thirds of those interviewed - 68.4 per cent said that the quality of services provided by the government was poor.

They believe that to help the situation, the government should reduce bureaucracy, taxes and the cost of energy.

Mr Farrugia noted that access to finance for micro and small entrepreneurs was bad in Malta as banks did not loan money to small businesses.

The survey was compiled by Marcel Mizzi.