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.

Company status

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).

Balance sheet

Any company with a >20% deterioration in net assets over a three-year period is excluded.

Grading

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.