BDO sponsors the Profit Track 100 league table, published annually by The Sunday Times, and this year the profit growth of UK private companies has reached new records.
The mid-sized UK businesses that made the Profit Track 100 league table were undeterred by the uncertainty following the Brexit vote and instead benefitted from sustained economic growth. Typically, the average profit growth of companies for their last three years is around 45%. In the 2017 league table, we witness an average profit growth of 83%.
Who are these businesses that made the Profit Track 100 league table?
Well, they operate in a range of different sectors, serve a variety of markets and are dotted around the UK. At BDO, we call these businesses a large part of the UK’s economic engine. And an engine of success they certainly are; Paymentsense who rank at no.1, grew profits of an astonishing 203% a year from £504,000 in 2013 to £14.1m in 2016.
We want to share a few examples of these successful companies …
13 of the top 20 and more than half of the companies are based outside of London and the southeast, including Gtech in Worcestershire, Balmoral Group in Aberdeen and Avon Group in Bristol.
More than half of the companies have grown profits from international operations. IT services provider Claranet has 18 offices in six European countries; fishing tackle supplier Fox International Group sells their products in 30 European countries.
Housebuilding and construction
28 of the companies are operating in the building industry. Housebuilder Fairview achieved the highest profits of all the companies featured on the league table earning £65m in 2015.
25 of the businesses are manufacturers who make the majority of all their products in the UK. Combined, they represent profits of £179m and employ 9,700 staff.
View the BDO Profit Track 2017 league table
What do you think we need to do to continue to thrive?
The New Economy is our view of the policies we need the government to put in place to help these mid-sized businesses continue to thrive.
We would like you to get involved too. Do you have ideas that you want the Government to take on board – ideas that would help businesses thrive in the UK? Join the conversation!
Stuart Lisle is Tax Partner at BDO.