June 26, 2019
‘1000 Companies to Inspire Britain’ 2019 report highlights continued importance of SMEs to UK economy
- Sixth edition of London Stock Exchange Group’s report identifies fastest-growing and most dynamic SMEs across the UK
- SMEs in report recorded 108% annual average revenue growth, and collectively generated almost 96,000 jobs over last two years
- Almost a quarter of businesses in the report come from across Scotland and North England
- SMEs from North East England, Wales and Northern Ireland record biggest increase in representation from 2018 report
- Engineering & Construction, Retail, and Manufacturing are leading sectors from a diverse range of companies
London Stock Exchange Group is pleased to launch the sixth annual edition of its ‘1000 Companies to Inspire Britain’. The report identifies the UK’s most dynamic and fastest growing Small and Medium Sized Enterprises (SMEs). This year’s report features companies from a diverse range of sectors and regions, reflecting the entrepreneurial drive seen across the country. Over two-thirds of the companies appear in the report for the first time, while six firms are making their fifth consecutive appearance.
The publication of the report was celebrated by the opening of the London market with The Rt Hon Nicky Morgan MP, Chair of the Treasury Select Committee; David Schwimmer, CEO, London Stock Exchange Group; and more than 40 companies featured in the 2019 report. The ceremony was followed by an event, featuring companies from this year’s report discussing their growth journeys and the key building blocks to success for SMEs.
The Rt Hon Philip Hammond, Chancellor of the Exchequer, HM Treasury:
“Small businesses not only generate over 50% of all private sector turnover in the UK, they also account for 60% of all UK private sector employment. SMEs are the backbone of the UK economy and we are dedicated to supporting these high growth companies to achieve their potential. I congratulate all the companies that are included in this year’s 1000 Companies to Inspire Britain report.”
David Schwimmer, CEO, London Stock Exchange Group:
“Congratulations to all the companies selected for inclusion in the sixth edition of London Stock Exchange Group’s 1000 Companies to Inspire Britain report, which identifies the UK’s most dynamic SMEs. SMEs drive growth, innovation and job creation and are the lifeblood of the British economy. We believe that supporting the growth of these businesses is critical to the UK economy and the creation of a society that works for everyone.”
This year’s report in numbers:
- Overall average annual revenue growth of the 1000 UK companies featured in the report was 108%, up from 70% in 2018.
- Companies from North East England exhibited revenue growth among the highest in the country at 95%, and the number of companies on our list from this region increased by 56%.
- North East England (56%), Wales (15%) and Northern Ireland (12%) companies record the biggest percentage increase in representation since the 2018 report.
- London and South East England continue to have the greatest number of companies, followed by North West England, East of England and the West Midlands.
- The top five industries represented by the 1000 UK companies are Engineering & Construction, Retail, Manufacturing, Information Technology, and Healthcare, accounting for 44% of the overall list.
- The 1000 companies in this year’s report together created 95,827 jobs over the past two-year period, a 39% increase compared to last year’s report.
Industry leaders included in this year’s report:
- Engineering & Construction: Dyer Engineering, Londonewcastle, Reaction Engines
- Retail: Charlotte Tilbury, JAY-BE®, TM Lewin
- Manufacturing: Aspen Pumps, OE Electrics Group, Timberwolf
- Other sectors: BrewDog Plc, Funding Circle, Rush Hair, Secret Escapes, Zip World
Keith Morgan, CEO, British Business Bank:
“We’re delighted to return as a sponsor of the 1000 Companies to Inspire Britain report for a second year. The results of this in-depth analysis by London Stock Exchange Group are both timely and informative and it’s positive to see evidence of strong revenue growth all around the UK. Our equity and debt finance programmes have helped many of the featured businesses to scale-up and the British Business Bank continues to work to address regional imbalances in access to investment, to ensure smaller businesses across the UK can access the finance they need to fulfil their growth potential.”
Julian Morse, Head of Growth Companies, Cenkos:
“We at Cenkos are proud to be associated with the innovative and dynamic businesses featured in this year’s 1000 Companies to Inspire Britain report. Our dedicated Growth Companies Team specialises in successfully facilitating growth capital for UK growth companies, which are the ‘engine room’ of the UK economy. We will continue to support UK growth companies and their associated entrepreneurs.”
A full searchable database of all the companies along with a downloadable pdf of the publication can be found online at www.1000companies.com. Links to the 1000 Companies to Inspire Britain 2019 infographics can be found here: UK Snapshot and Crunching the Numbers.
The report is supported by British Business Bank and Cenkos. DueDil is London Stock Exchange Group’s research partner for the report.
Notes to editors:
About the 1000 Companies to Inspire Britain report:
Methodology
To identify the 1,000 companies, financial technology company DueDil combined key financial performance indicators and sector benchmarks. More details on the Companies to Inspire reports and methodology can be found online at www.1000companies.com.
Company status
Companies must be active and registered in the UK. 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 that have been incorporated within the past three years (i.e. after 1 November 2016) are excluded.
Financial performance
Each company’s average annual turnover growth rate is calculated over a three-year period (or on four sets of accounts, where four sets of accounts are available). The calculations are weighted to favour latest-year growth. Any company with over 20 per cent deterioration in net assets over a three-year period is excluded.
Sector benchmarking
Having identified the long list, the eligible companies are then separated into their Standard Industrial Classification (SIC) grouping. Within each SIC sector, the companies are ranked by their individual growth rate; and those that have most outperformed their sector averages are identified.
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