UK mid-sized businesses celebrate record growth

Mid-sized businesses report a record growth across all sectors in 2016, a new study finds.

Mid-sized businesses in the UK are posting record growth, according to Investec.

The compound annual growth rate (CAGR) for the last four years amongst the country’s 100 fastest-growing mid-sized companies reached 59 per cent, up from just under 45 per cent in June this year when the previous ranking was published, and from 38 per cent in November 2014, when the list was first put together.

The biannual list, now running for the fifth time, ranks the 100 fastest-growing, profitable mid-sized private companies in the UK and Northern Ireland by their four-year CAGR.

The 100 companies on the list reported aggregate revenues of more than £6.5 billion in their last filings, an average of £65 million per business. This is up from £4.8 billion and £48.5 million respectively in June, producing record growth.

Ed Cottrell, head of corporate lending at Investec, says the current ranking provides an encouraging snapshot of the economy.

‘We devised the Mid-Market 100 in 2014 to recognise the elite amongst the UK’s mid-sized private companies and to showcase their exceptional growth stories. In the last two years, the pace of growth has been remarkable. Average revenue growth has jumped from 38 per cent to just under 60 per cent, which is a hugely encouraging sign of health in the economy.’

Cottrell adds, ‘The Mid-Market 100 has become an important measure of how this vital sector of the economy is performing. But as well as the headline numbers, it also offers a fascinating snapshot into the individual achievements behind the statistics. These fast-growing and innovative businesses are exactly the sort of companies we need to keep the economy expanding as the Brexit negotiations continue.’

Financial and professional services, London and the South East dominate the current ranking. There are 41 financial and professional service businesses on the list, with firms from London and the South East accounting for 54. This is up from 28 and 47 in June, respectively.

Outside of London and the South East, the North West and West Midlands regions have the greatest number of high-growth companies, with 10 apiece. Scotland, which accounts for seven companies on the list, has seen a 40 per cent increase in its share since June. For the West Midlands, the growth in share is even more impressive at just under 67 per cent.

By industry sector, property and construction businesses continues to drive growth, accounting for 19 of the fastest growing businesses. Manufacturing and Industrial companies are also important, with nine of them on the list.

Cottrell concludes, ‘There has been a shift in emphasis towards London and the South East but regions such as the North West and West Midlands are more than holding their own. As specialists in serving mid-sized businesses throughout the country, we always knew that the UK was a well-balanced economy, but this record growth shows it.’

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