Report reveals profit growth for East Midlands’ top businesses
The top performing businesses in the East Midlands’ grew profits by an average 29% per year over the last three years, according to the initial findings of the annual East Midlands Top 200 Report.
The Report, now in its fifth year and produced by the East Midlands office of business and finance adviser Grant Thornton in partnership with the CBI, also found that the region’s top 200 businesses in Nottinghamshire, Leicestershire, Derbyshire and Lincolnshire together provide around 100,000 jobs, an increase of 39% in three years.
Ranking businesses by the percentage growth in profitability over the last three years, the Report highlights both established and up-and-coming businesses, and tracks the fortunes of the local and regional economy, to provide insights into the East Midlands’ fastest growing companies by key sector and performance indicators, to deliver a barometer of overall economic performance.
“The initial findings reveal that overall, East Midlands’ businesses have experienced an average compound growth rate in profits of just over 29% each year since 2014,” said Grant Thornton director, Mark Pashley.
“Businesses in Nottinghamshire have performed particularly well and out-paced the regional average, showing compound growth rate in profits of more than 34% for the same period. More than a third of the county’s businesses on last year’s Report are placed again this year, with two listed each year for the last five years, meaning their profits have grown each year for eight years.”
This year’s Report shows a stark difference in the amount of cash reserves for the East Midlands’ top 200 businesses between the opening and closing periods.
Pashley added: “Despite a nearly 13% increase in debt, the net debt position shows that companies appear to be storing cash on the balance sheet and not spending or investing, perhaps signalling some nervousness over the future, maybe due to Brexit or a more general lack of incentive to invest.
“Of the 200 businesses on this year’s report, just over three-quarters (77%) are mid-sized and 23% are large businesses, from a broad range of market sectors and industries that illustrate the region’s impressive economic and market diversity, which plays a significant role in its overall performance, durability and sustainability.
“Services is the largest and top performing sector this year, made-up of IT/software, legal, recruitment, financial, real estate, banks, travel and tourism, and has performed significantly better than in previous years. Other sectors include manufacturing, made-up by chemical, plastics, consumer goods, industrial and food and beverage businesses, as well as automotive, retail, freight and logistics.”
Pashley added: “With a detailed analysis of the financial performance of the region’s 200 fastest growing companies, the Report creates a unique snapshot of the health of the East Midlands economy, ranking the companies based on profit growth over a three-year period.”
