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13:09GMT 01Sept2008-Analysts' FTSE 350 estimates may be too high:KPMG

KPMG says City estimates suggest that, despite economic conditions, companies in the FTSE 350 will generate a 52 percent higher surplus cash over the next three years compared to January 2007 forecasts.
The chartered accountant's Cash Counter report reveals that City analysts expect the FTSE 350 will generate over 301.9 billion pounds in surplus cash from 2008 to 2010 -- significantly up from the 198.6 billion pound forecast in January 2007 for the three years following that date.
KPMG says in a statement that that the "surprising" City estimates are "perhaps too high" and don't foresee the full impact of the credit crunch.
"Since KPMG's last survey, we believe that the most likely use of surplus cash has changed from use or return to retention," says David Simpson, a partner in KPMG's corporate finance practice, in the statement.

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