BDO Yorkshire Report: Making our mark on international markets

YORKSHIRE’S largest 150 companies have continued their drive for growth, having increased international sales for the sixth consecutive year, according to analysis from accountancy and business advisory firm BDO.

According to the BDO Yorkshire Report 2014, which examines the financial accounts of the region’s top 150 businesses, the percentage of sales to Europe – still by far the region’s biggest overseas market – has increased by 8% to £12bn in the reporting period.

To read the full report, click here.

Looking further away from home, the region performed even better with the value of goods exported to the rest of the world up by 22.8% to £6.8bn.  Large companies are also making inroads beyond traditional export markets, with sales to Asia up 21% and Africa 9% – albeit from a low base.

Terry Jones, partner and head of BDO in Yorkshire, said: “Yorkshire has a lot to be proud of.  Revenues, profits and investment levels are all on the up; witnessing such growth in international markets is the icing on the cake.

“The challenge now is for medium sized businesses – those that will make or break our region’s long term prosperity – to follow the lead of the biggest companies and break free from the shackles of geographic borders. We must encourage them to take advantage of the opportunities that lie overseas, whether that be through joint ventures, exports or M&A activity.”

Developing international strategies isn’t easy. Navigating tax structures, regulatory requirements and transfer pricing models, not to mention cultural differences, can be very daunting.

Over the past few years, government support has significantly improved with the help of agencies like UKTI and UK Export Finance (UKEF). But there is still huge untapped potential in many medium-sized businesses. 

Jones added: “Local businesses need to build the knowledge and confidence to go abroad, develop their international network and connect with professional advisers that can provide on-the-ground support. Getting the very best advice and being fully informed of the funding options and incentives available to them is crucial.

“Not all businesses will be in a position to expand internationally, but those that are need help to understand their potential.  Both the Government and private sector need to step up to the challenge to help local businesses prosper in new markets across the world, which will in turn benefit the prosperity of our region.”