Businesses celebrate hat-trick of increased revenues, profits and international sales.
The 200 biggest companies in the West Midlands have continued their post-recession revival with a hat-trick of increased revenues, profits and international sales, according to the West Midlands Report 2015 released today by accountancy and business advisory firm BDO LLP.
The top 200 companies saw net profits increase by 52% to £7.6bn, compared to £5bn the previous year. Group revenues grew by 13% to £124bn.
International sales also surged, more than doubling from £14.4bn to £31.4bn in just two years, with overseas expansion being described as “the guiding principle” for growth for regional businesses.
The more stable economic and fiscal environment has also started to be reflected in recruitment and pay. According to the BDO analysis, 630,000 people are employed by the region’s biggest companies – almost 40,000 more than the 12 months previous.
The inaugural BDO West Midlands Report 2015 compiles the latest published accounts from the West Midlands’ largest 200 companies based on revenues, and serves to create a new barometer of economic health for the region.
Richard Rose, partner and head of BDO LLP in the West Midlands, commented: “As a proud region with a strong sense of identity, the West Midlands has its own distinct economy. This solid financial progress shouldn’t be seen as a coup just for the region’s biggest companies but should be welcomed by their supply chain and the thousands of businesses across the region, regardless of size.
He added: “The growth in international sales is a huge step in the right direction and seems to be the guiding principle behind a growing number of large and mid-market businesses across our region. The time is now to cast aside economic worries, invest in tomorrow and forge ahead with global expansion plans, turning a worldwide thirst for British build quality into a major export opportunity.”
Overseas sales account for more than a quarter of turnover for the top 200 companies. Manufacturing is leading the way, with machinery and transport making up 71% of goods sold abroad. Non-traditional export markets are coming to the fore – the report cites South America, Australia, New Zealand and Indonesia as destinations of choice for many regional firms.
Manufacturing is the region’s most imposing sector with 70 firms making the regional top 200 list. The retail & wholesale sector is represented by 52 companies, followed next by support services (19).
The BDO report also finds that Birmingham is home to 59 (or 30%) of the top 200 companies in the West Midlands, followed by Warwickshire (45 companies) and the Black Country (34).
However, it is the home of JLR, Warwickshire, that generates the largest amount of revenue, accounting for 46% (£57.2bn) of the top 200’s £124bn total turnover.
“Companies seem to be on much firmer footing, with many seeing the worst behind them. We must now work harder together to create a springboard for further growth in domestic and international markets,” says Richard Rose.
“The upcoming General Election is the next big staging post and one that provides both opportunities and threats, but the West Midlands has already proved its resilience and I’m confident we can look forward to regional prosperity for many years to come.”
