North West PLCs hit with collective £1.4bn loss

Listed businesses based in the North West have faced a challenging first quarter this year, with the combined market capitalisation plummeting by £1.4bn.

According to data from professional services firm Deloitte, the total market capitalisation of the region’s companies fell to £36bn in the first three months of 2016.

In its latest North West Share Index, Deloitte found that FTSE350 firms in the North West suffered a combined loss of £1.23bn. Overall, 10 of the 16 FSTE companies in the region saw a market cap decline, with an average loss of 8.26%.

Losses among non-FTSE companies were comparatively lower, according to the Index, sitting at £231m.

Despite the challenges, a number of listed businesses in the North West reported strong performances during Q1, with Bolton-based appliances firm AO World plc seeing growth of 14.67% and Manchester-headquartered fashion retailer Boohoo.com raising its market cap by 20.96%. Similarly, pharma giant Dechra Pharmaceuticals added £151m to its market cap.

The head of PLC activity at Deloitte’s North West office, Chris Robertson, said: “Considering the huge global decline at the beginning of the year, it is unsurprising to see an effect on the value of the region’s companies this quarter.

“However, despite this, it is impressive to see many of the region’s businesses still performing strongly, with a large number experiencing double digit percentage growth.”

He continued: “It has been a tough time for many listed companies, as market confidence is being affected by the possibility of a Brexit and the current economic slow down.

“Nevertheless, we expect to see the market stabilise in the near future, with North West companies bouncing back to reach growth levels they witnessed in the successful periods of 2015.”

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