Some of the UK’s biggest companies are forecast to generate more than £301bn of extra cash in the next two years, suggesting that many analysts in the City are still in denial about the impact of the credit crunch on earnings, according to research from KPMG.

Companies in the FTSE 100 will amass £278.3bn in surplus cash by the end of 2010, representing a 60.6 per cent increase on last year, says the research which is based on analyst forecasts.