The Works top dog in Midlands in private equity-backed firms table
NINE West Midlands companies are featured in the Sunday Times Deloitte Buyout Track 100 league table, which ranks Britain’s 100 private equity-backed companies with the fastest-growing profits (ebitda) over the last two years.
Published this weekend for a sixth year, the table reveals the top company in the region is The Works, the discount bookseller headquartered in Sutton Coldfield. Bought out of administration three years ago by chief executive Anthony Solomon and turnaround specialists Endless, profits have grown an average 87% a year over the last two years, to an annualised £10.3m in 2011. It is ranked number seven.
Second in the table – from a West Midlands perspective – is Telford-based electrical product manufacturer Nexus Industries. Ranked at number 14 in the table it has shown annual profit growth over the two year period of 77.8 per cent.
New to the table this year is Birmingham-based patisserie and café chain operator Patisserie Valerie, which has grown to 47 outlets around the UK in just six years. In 2006, Risk Capital Partners and Luke Johnson bought the firm in a £6m deal and, with chief executive Paul May at the helm, profits have grown an average 26% a year over two years, to £6m in 2010. It is ranked at 88 in the table.
The other West Midlands firms to feature in the top 100 are Solihull-based UK Drainage Systems (32), Walsall social housing contractor Bullock (33), Warwick construction consultancy Rhead Group (55), Telford cling film and foil manufacturer Wrap Film Systems (63), Willenhall discount retailer Poundland (86) and Leominster-based Tyrrells Crisps (91).
Darren Boocock, head of corporate finance for the Midlands region at Deloitte, said: “Despite the many challenges facing the UK economy, it is very pleasing to see so many successful private-equity-backed businesses in the Midlands.
“It is clear that strong management teams supported by private-equity investors can deliver above average performance which in turn makes them attractive M&A candidates.”
