Yorkshire is leading the way for the North of England’s mid-market companies, a sector which researchers say is helping to drive forward the national economy.
Research from specialist bank Investec shows an elite group of fast-growth private mid-market companies are employing 3,730 people in the region with an average growth rate of 50 per cent.
Of the businesses listed in the fourth Investec Mid-Market 100 list, published today, eight are in Yorkshire, the highest of any region in the north/
Among those included are transport specialists ESP Systex in Hull - which was listed in third place in the Top 100 list - as well as Stainforth Construction in Shipley and manufacturers Benjn R Vickers & Sons in Leeds.
Earlier this year ESP Systex was named the prime mover amongst Yorkshire’s privately owned companies with a double win at the Ward Hadaway Yorkshire Fastest 50 Awards 2016.
Nationally the UK’s 100 fastest-growing mid-market companies employ 25,385 people across the country, up 42.1 per cent on 2014, when total staff numbers stood at 17,870.
London continues to dominate the list with 35 entrants. Only the South East and Midlands were ahead of Yorkshire.
The list, which is released twice a year, also shows that average growth in the mid-market is on the rise: the current top 100 companies achieved average growth of 44.6 per cent - a 10.4 per cent increase on average growth in the last ranking, published in November last year.
Ed Cottrell, Head of Corporate Lending, at Investec said: “The mid-market continues to be one of the most dynamic segments of the UK economy and it’s fantastic to see the pace of growth increasing, raising the bar to entry into the top 100.
“It’s especially good to see that more than a quarter of companies on the current list have appeared before – including five which were on the first list – demonstrating that high growth is an achievable long-term goal.
“While London and the South-East have done particularly well this time, the four lists we have compiled so far have delivered a clear message of balance.
“The UK mid-market touches all sectors and all regions.”
Financial services somewhat predictably led the way as the main sector for the leading companies, followed by construction and manufacturing.
The Mid-Market 100 provides a ranking of the fastest-growing mid-market private companies in the UK. To ensure the research captures sustainable growth, companies are ranked on the four-year compound annual growth rate (CAGR) of turnover.
As well as achieving greater growth overall, the bar for inclusion in the top 100 is getting higher. To make it on to the current list, companies had to achieve sustainable growth of at least 30.6 per cent; versus 25.4 per cent a year ago.
By geographical region and industry, the South-East of England and Property saw the biggest percentage change in their share of high-growth companies, both of them increasing by 225 per cent since the previous list.