Listed companies witness slower growth in fourth quarter
The overall value of the North West’s 67 listed companies increased by 1% in the fourth quarter of 2017, a slower rate of growth than witnessed earlier in the year.
According to advisory firm Deloitte’s quarterly North West Share Index the market capitalisations of all listed businesses in the region has risen from £45.6bn to £45.9bn in the three months to December 31, 2017.
However, this upturn was largely due to the addition of Rochdale-based Footaslyum to the Alternative Investment Market (AIM), which completed its £171m IPO in November.
The North West’s FTSE-listed companies witnessed modest growth during the three months, with the overall value increasing by £123m to £34.7bn, whilst the value of the smaller cap companies on the AIM increased by three per cent to £11.2bn.
From a sector perspective, the aggregate market capitalisation of the region’s listed retail businesses dipped 3% in Q4 2017, compared with a 5% increase over the same period in 2016, amidst mixed reports as to consumer sentiment and the robustness of the high street.
In contrast to the quarterly performance, the total value of retail listed companies in the North West now stands at almost £19.3bn – a 13% rise on the £17bn reported in Q4 2016.
Technology companies enjoyed a buoyant fourth quarter, with a 13% increase in market capitalisations seeing total value rise to almost £1.5bn. In particular, GB Group, the identity management specialist based in Chester, saw its value jump 18% in the quarter, having recorded a 40% revenue increase in its half year results in November.
Chris Robertson, partner and head of plc activity at Deloitte in the North West, said: “Following strong performances throughout the year, it is perhaps unsurprising that slowing wage growth, coupled with an increase in inflation has acted as a drag on sentiment towards the retail sector in Q4.
“A positive we can take from this data is the performance of the tech-focused businesses in the region. The North West has naturally become a hub for some of the nation’s most innovative organisations, and these strong results are indicative of the huge potential these companies possess.”
