Getting to 1,000 – the methodology
This directory of 1,000 inspiring British companies was compiled by leading sales software business, Growth Intelligence. The company tracks the performance & activity of millions of businesses in real time
1. Turnover: Companies need to have turnovers ranging from £6 million to £250 million in the 12 months up to October 2013, according to Growth Intelligence’s software or the last reported historical revenues at Companies House.
2. Age: The company must not have been incorporated in the past three years
3. Ownership: The company’s parent company must not be incorporated in a foreign country (excluding the popular tax-efficient jurisdictions).
4. Business type: The company must not be an investment vehicle or fund.
5. Subsidiaries: The company must be a parent company where possible rather than a subsidiary. The parent company’s revenues must not exceed 125 per cent of the subsidiaries’ revenues & the revenue growth at subsidiary level must largely carry over to the parent.
The qualified set of companies was filtered based on consistent outperformance of their sector average in previous years. This was applied across two areas:
1. Revenue growth
2. One or more of:
a. growth in the value or number of contracts awarded
b. expansion in work space currently occupied
c. growth in the number of employees d. growth in the intellectual property owned or awareness of the business
Across both measures, companies were scored on their average growth outperformance relative to their sector; for example, exponentially-weighted revenue growth minus sector average revenue growth in the past five years. The exponential weighting favours businesses that have shown recent growth.
The 1,000 businesses with the highest score & the highest average revenue growth outperformance were selected for the list.