The average profits of Leicestershire’s best performing businesses have more than doubled each year since 2014, according to the initial findings of the annual East Midlands Top 200 Report produced by the East Midlands office of Grant Thornton UK LLP in partnership with the CBI.
Now in its fifth year, the Top 200 report is the region’s only dynamic, in depth study of the growth, performance and percentage rise in the profitability of businesses run from the East Midlands, from a regional perspective and by individual market sector and county.
Ranking businesses by the percentage growth in profitability over the last three years, the Report highlights both established and up-and-coming businesses, and tracks the fortunes of the local and regional economy, to provide insights into the East Midlands’ fastest growing companies by key sector and performance indicators, to deliver a barometer of overall economic performance.
The full findings and names of the Leicestershire businesses making the 2017 Report will be unveiled at a breakfast event supported by the LLEP Business Gateway, on Wednesday 21st June 2017, at The National Space Centre.
“The Report’s initial findings reveal that overall, East Midlands’ businesses have experienced an average compound growth rate in profits of just over 29% each year since 2014,” explains Grant Thornton Director, Mark Pashley.
“Leicestershire businesses making the 2017 Report have performed well in the last 12-months, and provide almost 70,000 jobs in the region.”
However, the Report shows a stark difference in the amount of cash reserves for the East Midlands’ top 200 businesses between the opening and closing periods, as Mark explains: “Despite a nearly 13% increase in debt, the net debt position shows that companies appear to be storing cash on the balance sheet and not spending or investing, perhaps signalling some nervousness over the future, maybe due to Brexit or a more general lack of incentive to invest.
“Of the 200 businesses on this year’s report, just over three-quarters (77%) are mid-sized and 23% are large businesses, from a broad range of market sectors and industries that illustrate the region’s impressive economic and market diversity, which plays a significant role in its overall performance, durability and sustainability.
“Services is the largest and top performing sector this year, made-up of IT/software, legal, recruitment, financial, real estate, banks, travel and tourism, and has performed significantly better than in previous years. Other sectors include manufacturing, made-up of chemical, plastics, consumer goods, industrial and food and beverage businesses, as well as automotive, retail, freight and logistics.”
Mark adds: “With a detailed analysis of the financial performance of the region’s 200 fastest growing companies, the Report creates a unique snapshot of the health of the East Midlands economy, ranking the companies based on profit growth over a three-year period.
“This year sees a new format for the events revealing the Top 200 East Midlands Report, and will enable us to discuss the local business landscape and economy,” says Mark, “and coming just over a week after the General Election, will no doubt give opportunity to discuss the result, its impact, and other issues such as Brexit.”
All Leicestershire-based businesses listed in the 2017 Report will be invited to attend the Leicester event, sponsored by LLEP Business Gateway, where guest speakers will include Grant Thornton, a panel discussion and Q&A session.
“This new format will enable us to discuss the local business landscape and economy,” says Mark, “and coming just over a week after the General Election, will no doubt give opportunity to discuss the result, its impact, and other issues such as Brexit.”
Nick Pulley, Chair of the LLEP, added: “The LLEP Business Gateway is one of the 38 Growth Hubs across the UK set up to make it easier for businesses access the support they need to grow and create jobs.
“We are supporting The East Midlands Top 200 Report as it identifies the companies with the highest profit growth across the region. As a Growth Hub, our role is to help scale up and high growth companies to achieve their ambitions by accessing all available support including new investment requirements and upskilling their workforce; both important elements of their continued growth journey.”
For more information about attending the event, contact Mayuri Dhanak, Grant Thornton, Tel: 0116 257 5562, email: email@example.com.