Top private businesses in the region lift profits up by 7.9%
Cambridgeshire’s leading privately-owned businesses are continuing to drive the growth agenda, with entrepreneurship and innovation pushing profits ahead by 7.9%, according to new data from Grant Thornton UK LLP.
The firm’s 12th Cambridgeshire Limited report, a detailed study of the region’s top 100 private companies, reveals that collectively, EBITDA (earnings before interest, taxes, depreciation, and amortisation) stepped up to £496.6 million in the year under review. Sales increased by 6.4% to £6.8 billion.
In total, the 100 private firms employ 24,330 people across the region – on an average salary of £45.9k. The largest industries by number of companies are Services (21), Consumer Products (20), and Industrial Products (18). Fixed assets went up by 3.3% to £1.45 billion, which suggests that businesses are expanding their capacity and upgrading infrastructure.
Cambridgeshire Limited also demonstrates that the regional economy has more geographical balance than is often perceived to be the case. The top 100 private businesses are distributed across the county with Cambridge (32), Peterborough (30) and Huntingdon (13) each having ten or more businesses appearing on the list. As a sign of the dynamism in an ever-changing market, 14 new entrants made it into the top 100 this year.
In addition, Cambridgeshire’s fastest growing firms with a turnover of over £10 million are highlighted in the report. They include Howard Ventures Ltd, the property and development group, Midsummer Energy Ltd, which supplies photovoltaic panels, and the telecommunications contractor DB Broadcast Ltd.
The top 100 also maintain an avowed faith in sustainable growth. As Guy Shropshire, CEO at G’s Group, the international farming business which sits in pole position in the top 100 put it: “Our commitment to the triple bottom line of People, Planet and Profit is central to our strategy.
"As progressive growers, we make a difference by developing our people, caring for the environment and supporting local communities, while supplying quality fresh produce that delights our customers every day. We are here for the long term, with sustainability at the centre of our decision making.”
James Brown, partner at Grant Thornton, and one of the report authors said: “Given all the well-known challenges of increased borrowing costs, skills shortages and the political uncertainty of the last 12 months, the stellar performance of the top 100 is a great reminder of the quality and resilience of Cambridgeshire as a whole.
"Our region has a proven track record as a place to invest and operates with a multi-sector dynamism that bodes well for the future. At a time when the national agenda is all about growth, Cambridgeshire is a powerhouse in its own right, with a rich seam of private businesses performing well in their markets.
"The talent and the spirit of entrepreneurship is here but success brings its own challenges. The next steps should be about tackling the challenges of skills, transport, housing and health and social care.”
Stuart Davies, a Corporate Finance Partner who operates from Grant Thornton’s Cambridge office, added: “The recent listing of Raspberry Pi, a Cambridge-based company, is yet further evidence of the potential here, especially given the recent scarcity of companies going public.
"The successful listing underscores Cambridgeshire’s reputation as a hub for technology and innovation, boosts confidence locally, and sets down a marker for others to follow.”