North West listed companies lose £1.4bn due to Brexit uncertainty

Stock market turbulence caused by June’s EU referendum has seen North West listed companies lose £1.4bn, according to new data.

Professional services firm Deloitte, in its latest North West Share Index, has found that the total market capitalisation in the region dropped from £36.2bn to £34.8bn during Q2 2016.

The largest North West firms are believed to be the worst hit, with the 15 FTSE 250 companies in the region collectively losing £1.2bn.

However, despite ongoing market uncertainty a number of North West-based companies demonstrated strong trading.

United Utilities, the water and wastewater services provider based in Warrington, added more than £750m to its market cap. Online fashion retailer Boohoo.com and support services company Stobart Group, along with two other North West companies, added over £100m to their values.

North West firms continue to see a listing as a suitable route to market, according to Deloitte. Watkin Jones, the student property developer, completed its £257m IPO in March. Similarly, NorthEdge Capital-backed manufacturer Accrol Group completed its £93m AIM IPO just two weeks before the EU referendum vote.

Deloitte’s head of plc activity in the North West, partner Chris Robertson, said: “While there can be no doubt that the result of the referendum had a profound initial effect on the UK’s public markets, there is still cause for optimism.

“Following the first 24 hours, both the FTSE100 and FTSE All Share have continued to recover, and currently sit higher than immediately before the vote.”

He continued: “In addition, success stories like those seen from United Utilities, Boohoo.com and Stobart underline the ongoing appetite from investors for companies in the North West, despite the current uncertain economic climate.

“We would recommend increased levels of caution when it comes to companies looking for routes to market, as investors typically do not respond well to uncertainty. However, once we navigate the traditionally tricky summer months, there will be opportunities for strong companies looking to list, and IPOs may return to the agenda later in the year.”

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