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£1 billion wiped off North West plc value in three months

North West-based companies listed on the London Stock Exchange have lost over £1bn of their collective market capitalisation over the last quarter, according to Deloitte.

Research from Deloitte’s North West Share Index shows that companies in the region struggled in the second quarter of the year, declining on average by 4.25%.

As a result, the total market cap of North West companies dipped to £24 billion, with each company losing an average of £13.6 million. In contrast, the FTSE overall saw growth of 0.44%.

Despite this, a number of the region’s companies continued to perform strongly. Energy software and service provider Bglobal, having completed the sale of Utiligroup to NorthEdge Capital last month, saw its market cap rise by 88%.

Similarly, Altitude, the provider of technology for promotional products, Grafenia, a graphic software provider,waste management company TEG Group and industrial services provider to the engineering, agriculture and food sectors, Carr’s Milling, all saw growth of between 25 and 45%.

The region’s largest listed companies, those on the FTSE350, struggled this quarter, with six of the nine experiencing market cap decline. Despite these six losing a combined total of over £1.1 billion, the 12% growth of United Utilities saw the company boost its market cap by £640 million.

Chris Robertson, partner in charge of PLC activity at Deloitte in the North West, said: “It has been an exciting time in the public markets, with some high profile national and regional floats and huge attention being paid to what’s happening by the press.

“It was never going to be possible to maintain this momentum, particularly as we enter the traditionally more quiet summer months.

“However, imaginations have been caught and there will be a growing pipeline of businesses looking very seriously at capital markets, with potential activity later this year.”

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