North Yorkshire’s most profitable SMEs have continued growing at a phenomenal rate over the past year.
These companies have a combined turnover of more than £680 million which is up from £535 million on the previous year – a major increase of 27%. These businesses have made almost £71 million profit, compared to £57 million in last year’s table, and now employ more than 3,500 people.
The services and wholesale sectors dominate the table this year, with the largest turnover figures of £244 million and £167 million respectively, followed by the retail sector which has a £152 million turnover.
Companies in the manufacturing sector have also done particularly well, with a 20% increase in turnover to £118 million, as well as growing their workforce by 28%. Crucially, these companies have also seen a significant increase in profits from almost £11 million to more than £16 million.
This year’s table is headed by G R Electrical Services, which is one of the UK’s leading manufacturers in the switchboard industry. The Sherburn in Elmet company’s latest figures show an increase in profits from £2.54 million to £3.58 million on turnover of £11.15 million.
This year there have been 15 new entrants from varying sectors in our Top 50 table. The highest is East Coast Construction (N.E) in third place, thanks to its hugely impressive profits, which have soared from £1.68 million to £3.16 million in 12 months. Other high ranking newcomers include housebuilder and property development company Daniel Gath Homes in eighth place and G R Potter Plant Hire in sixteenth.
It’s certainly no coincidence that these three companies are all linked to the construction sector, which reflects the amount of new development work and regeneration projects that are starting on site throughout North Yorkshire and beyond.
It’s fantastic to see that so many local business’ are showing such resilience, and indeed outperforming what’s happening in many parts of the national economy, at a time when there’s undoubtedly a level of uncertainty surrounding Brexit and currency exchange rates. However, despite what’s happening in the wider economy, there’s a lot to be optimistic about here in North Yorkshire.
There’s consistently positive noise coming from both the Northern Powerhouse agenda and the Government’s Local Growth Deal funding programme which is designed to support job creation and economic growth – this has already seen almost £150 million awarded to York, North Yorkshire and East Riding.
There’s also the potential that York Central offers, which at 72 hectares is one of the largest brownfield sites in the North of England. Securing Enterprise Zone status will help to unlock over £100 million to develop the site, which could create up to 7,000 jobs in the city, and over £1 billion for North Yorkshire’s economy.
Companies that arm themselves with strong advice can also take advantage of both Capital Allowances and Annual Investment Allowances, which are designed to support growth. Plus, the continued low-interest rate economy is helping to stimulate further expansion and investment for many ambitious and forward thinking organisations.
As the region’s largest independent firm of Chartered Accountants, we’re already working with many of these businesses and expect to see several making it into next year’s Top 50 Table.
Daniel Sowden, partner at BHP Chartered Accountants.
