BDO Yorkshire Report 2014: Cash levels at Yorkshire’s top 150 storm past £10bn mark

YORKSHIRE’S largest 150 companies have amassed more than £10.4bn cash in the bank, according to analysis from accountancy and business advisory firm BDO in Yorkshire.

Companies’ war chests have increased sharply by 22% on last year’s figures, with cash reserves now at their highest level since 2007, providing a sure fire signal that M&A activity could flourish over the next few years.

Yorkshire’s biggest businesses have also boosted growth prospects by increasing investment by a further £500m, taking total investment expenditure on property, plant and machinery to almost £3.5bn in the reporting period.

The analysis comes from the BDO Yorkshire Report 2014, now in its eighth year, which compiles the latest published accounts from Yorkshire’s largest 150 businesses based on revenue, analysing trends and acting as a barometer of health for the region.

The report found that the top 150 saw revenues increase to £90.7bn, from £88.7bn last year and £83.8bn the year previous.  Operating profits increased by 5% to £4.56bn and a more focused effort on overseas markets saw international sales grow by £1.7bn, up 7.7% to more than £12bn.

Terry Jones, partner and head of BDO in Yorkshire, said: “There is an overwhelming feeling of confidence across the region and the figures in this year’s report have set a mood for growth, not only for the biggest companies but for mid-market corporates and ambitious businesses across the region.

“Having built up cash reserves during the last few years, the challenge now is for management teams – many of which may not have the experience in dealing with a ‘positive’ cash crisis – to have the confidence and expertise to choose where to invest.

“It’s a challenging prospect having spent the last four to five year’s heads down fire-fighting, but businesses must look forward and seize the opportunities a recovering market presents.  This year’s success stories will come from those brave enough to invest three-fold; in talent, technology and international markets.”

There were 20 newcomers to the top 150, including children’s retailer Mamas & Papas, bus operator First West Yorkshire, clothing manufacturer John Cotton Group and Weber-Stephen Products, the importer and wholesaler of barbecues.