Member Article

Number of high growth firms increases in North East

The number of high growth companies in the North East has increased by nearly 20%, research from Barclays finds.

High growth companies are deemed to be SMEs recording a turnover of at least 33% in the past three years, as well as 10% year-on-year growth for a minimum of two years.

The Barclays and Business Growth Fund Index the North East saw a 24% fall in the number of active, growing companies recording share sales in the past year to 110.

Report authors said it could reflect potential investors being selective and North East entrepreneurs waiting for more favourable conditions to sell.

Andrew Miller, director, Barclays Wealth and Investment Management, Newcastle, said: “Although the number of North East companies recording share sales in the past year has fallen, we are seeing many positive signs of entrepreneurial activity in the region and a sense of renewed confidence.

“This is most notable in the significant increase in the number of high-growth companies in the region. As British entrepreneurs are on target to start more than half a million new businesses this year alone, it is clear to see that North East new businesses – and the individuals that set them up – are becoming an economic ‘tour de force’.

Andy Gregory, regional director - North, North Wales & Northern Ireland, BGF, added: “As long-term equity investors in growing UK companies, we are encouraged by the fact that there is a clear and addressable market in the North East.

“There is room for improvement but it is very promising to see that the North East has such a vibrant business angel community. We need to support these companies at each stage of their development in the hope that they continue to grow and provide further investment and jobs for the region as a whole.”

This was posted in Bdaily's Members' News section by Tom Keighley .