Medium firms powering economy - new research

Business news from the Peterborough Telegraph, peterboroughtoday.co.uk, @peterboroughtel on Twitter, Facebook.com/peterboroughtoday

Business news from the Peterborough Telegraph, peterboroughtoday.co.uk, @peterboroughtel on Twitter, Facebook.com/peterboroughtoday

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Medium-sized businesses are driving the county’s economy and outperforming smaller and larger firms in profitability and jobs, according to new research.

Figures from financial and business advisers Grant Thornton show that over the last 12 months, the county’s medium sized firms achieved a 22 per cent rise in operating profits while staff levels rose by six per cent.

However, some larger companies saw profits fall by 11 per cent while staff levels rose by only three per cent.

Medium-sized firms typically employ 50 to 499 people.

Two years ago, turnover levels for East of England medium firms stood at £57.9 billion, rising to £62.2 billion in 2013. However, during this year, turnover levels fell back to £59.9 billion.

Paul Naylor, partner at Grant Thornton, said: “Our medium-sized firms have done fantastically well through the financial downturn.

“Of concern is the flattening of turnover for East of England firms and also falling productivity levels among medium-sized firms across the UK.”