Yorkshire means business as firms top regional growth table

The Big Four accountancy firm said Yorkshire companies such as manufacturer Thornton & Ross and retailer Heron Food Group are leading the charge.

In a new paper published today, Deloitte said Yorkshire’s fastest- growing businesses are outpacing their peers in other major regions of the UK.

Deloitte is studying 1,000 UK companies with revenues of between £30m and £1bn which have collectively generated 55 per cent growth in revenue from 2008 to 2011.

Martin Jenkins, head of Deloitte in Yorkshire and the North East, said 70 of these firms are in Yorkshire and they have achieved revenue growth of 15.7 per cent over the past three years.

He added that outside of London, Yorkshire & Humber leads the larger UK regions in terms of revenue growth.

Revenue growth in the Midlands was at 15.2 per cent, in the South West it was at 15.0 per cent, in the North West it was at 14.9 per cent and in the South East it was at 14.1 per cent.

The criteria for inclusion in Deloitte’s Future 1000 list are three consecutive periods of positive growth in the past three years or over 10 per cent growth in the past two years. All firms also had to show positive average growth over the past three years.

Only 0.2 per cent of UK companies met the criteria and of these 94 per cent were private and just six per cent were listed.

“It’s a really difficult question to answer why the list is predominantly private,” said Mr Jenkins.

“That’s one of the questions we’re seeking a better insight to. I wouldn’t be surprised if the pressures on listed companies – having shareholders to answer to and short-term targets – are having an impact,” he added.

Deloitte said the new research highlights the critical importance of the UK regions which account for 72 per cent or £80.6bn in revenue of the total Future’s 1000 companies.

Of the 1,000, seven per cent are from Yorkshire & Humber and they contributed £8bn of revenue in 2011.

They have achieved a revenue increase of £2.8bn since 2008 and they employ 42,000 people, which is an increase of 8,000 employees over the past three years.

Consumer businesses and manufacturing are particularly strongly represented in the Future 1000.

Mr Jenkins pointed to Hull-based value food retailer Heron Food Group as a good example of a consumer-driven successful Yorkshire company.

Heron has increased revenues from £123.8m in 2008 to £164.9m in 2011 and its employment increased from 1,273 to 1,662 over the same period.

The retailer had around 170 stores in December 2011.

“Heron is a value proposition that’s very much in tune with the high street agenda. They have focused on understanding their customers,” said Mr Jenkins. “They’re very much a Northern-based business.”

Huddersfield-based pharmaceutical manufacturer Thornton & Ross, best known for Covonia cough medicine and heartburn cure Settlers, increased its revenues from £42.5m in 2008 to £56.9m in 2011 and its workforce grew from 361 to 424 over the same period.

“Thornton & Ross has taken a number of brands overseas. It has taken cough remedies to France,” said Mr Jenkins.

In 2011 Thornton & Ross’s exports accounted for £10.3m or 18 per cent of sales.

Deloitte has singled out exports as one of the key drivers for British businesses.

It believes that consumer demand in emerging economies represents the single greatest opportunity for British companies and estimates that there are one billion middle-income consumers in emerging markets.

“Many British brands are coveted in these markets and London 2012 is already giving Brand Britain a welcome boost,” said the report.

“More than 60 per cent of Chinese and Indian consumers surveyed by Deloitte say they are likely to buy more British products.”

Another driver is creating an environment where business is part of the solution rather than a problem.

“While the business community needs to address the issue of public trust, it is important to be clear that flourishing businesses are part of a flourishing society,” said the report.

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