Midlands claims over a third of the UK’s fastest-growing chemicals and coatings firms

Leeson Polyurethanes

The Midlands is home to over a third (36%) of the fastest-growing privately-owned chemicals and coatings manufacturing businesses in the UK – the highest concentration in any region of the country – according to a new study.

The Catalyst Chemicals & Coatings Fast 25, prepared by Catalyst Corporate Finance, ranks private businesses on the basis of revenues they have recorded over the past two years and covers a diverse range of sub-sectors, including cleaning and hygiene chemicals, industrial coatings and flavours and fragrances.

Nine out of the 25 companies identified in the ranking are headquartered in the Midlands, with three of these companies included in the national top 10 (all of which have a compound annual growth rate of more than 12%).

The highest ranked company in the Midlands (and the third strongest performer nationwide) is Hucknell-based agrochemicals business Doff Portland, which has achieved revenue growth of 22% per year over the last two years, making it the UK’s largest independent retailer in its market.

Catalyst said it was notable that almost half the businesses in the Fast 25 had recorded double-digit annual sales increases over the past two years despite the challenging economic backdrop and slowing global growth. This resilience has been achieved through a commitment to diversification, differentiation and innovation.

“As long as you’re well-funded and well-invested, you can ride out the ebbs and flows of business dynamics,” said Joel Leeson, managing director of Warwick-based coatings and adhesives business Leeson Polyurethanes.

The firm was ranked second in the region and sixth nationwide, with compound annual revenue growth of more than 15% over the past two years.  The business’ success has been driven by the successful export of products to diverse markets including continental Europe, Russia and Australia.

Ali Robertson, principal at Catalyst, said: “The strong rates of growth achieved by so many of the companies in the Fast 25 reinforce how the chemicals and coatings sector is a UK success story.  It is a story in which the Midlands is playing an important role as home to a high proportion of some of the UK’s best performing chemicals and coatings businesses.

“We see these thriving businesses establishing a record on the world stage for innovation, a highly skilled workforce and high quality products, making them extremely attractive to international customers and acquirers.”

To qualify for inclusion to the Fast 25, companies must have at least £5m of revenues and EBITDA of £1m in their latest accounts. These accounts should show two successive years of revenue growth, while each firm must also be registered in the UK as private, independent and unquoted companies.

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