Four out of five health and medical sector companies are confident of their prospects over the next six months, with strong current profits driving their optimism, a new survey of SMEs has found.

New research from Santander Corporate Banking, conducted online among 1,049 SMEs in August 2009, reveals that 83% of health and medical firms are confident in their prospects during the remainder of 2009, compared to a national average of 75%. One in five firms (20%) are 'very confident', 63% are 'confident' and 18% are 'not very confident'.

Profitability is the leading factor in this confidence, with one in four company owners (25%) citing it as the most important indicator. It is closely followed by turnover (23%) and forward orders (12%).

The economic downturn has resulted in falling profits for twice as many businesses as those which enjoyed increased profits in the first half of 2009 (46% against 23%). In the health and medical sector, however, 51% saw a rise in profits and 23% a decrease, making it the most successful sector.

Health & Medical is among the five business sectors most confident of its prospects for the next six months. Financial Services, the 1980s business career of choice, is among the five least confident sectors.

Steve Pateman, Head of Santander Corporate Banking, said: "Our research indicates that the health and medical sector has recorded strong profits in the first six months and confidence is high. It is important that the banking sector supports these businesses and helps them to turn their confidence into profits.

"Banks need to learn from the downturn and build stronger relationships with their customers in order to provide solutions that will help their stability and growth."