Getting to 1,000 – the methodology
To identify the 1,000 companies, the financial technology company DueDil blended P&L performance indicators, balance sheet analysis and credit health checking.
Companies must be UK-registered and active. Companies whose parent is incorporated in a foreign country are excluded, except for specific tax shelters. Ltd, Plc and LLP entities are all considered.
Investment vehicles and funds are excluded, as are charities and non-profit organisations.
Size and age
Independent company or consolidated group revenues must be between £6m-£250m, based on latest Companies House filings. Companies are excluded that were incorporated within the past three years (i.e. after 1 December 2011).
Any company with a >20% deterioration in net assets over a three-year period is excluded.
Having identified the longlist of eligible companies, we then separate them into their Standard Industrial Classification (SIC) grouping and compute the average compound annual growth rate % (based on turnover growth) for each SIC sector over a four-year period (four sets of accounts, where four sets of accounts are available).
Within each SIC sector, we then rank companies by their individual CAGR %, and identify the companies that have most outperformed their sector averages.
We weight our calculations to favour latest-year growth. Finally, we exclude the 10% of companies with the lowest credit score.