Member Article

Top Essex businesses surpass pre-pandemic trading levels

During 2022, the top 100 businesses in Essex bounced back from the COVID-19 lockdowns and are now surpassing pre-pandemic levels, according to new data from Grant Thornton UK LLP.

The leading business and financial adviser’s annual Essex Limited report found that the top 100 companies* in the county achieved an 11% higher turnover this year compared to 2019.

The Essex Limited report, which is compiled in collaboration with law firm Birketts, provides an annual review of the most successful businesses in Essex as measured by annual turnover levels.

The overall turnover for the top 100 companies in Essex has grown from £10.5bn in 2019 to £11.7bn this year. Pre-tax profits also saw a significant increase, growing almost 5% from £803m to £840m over the same period.

Several other key metrics showed that the county’s leading businesses are exceeding where they were before the COVID-19 lockdowns began. This includes the value of fixed assets, which is up by 13% compared to 2019, and employee numbers increased by almost 19%.

During this time, retail & wholesale as well as the services sector moved ahead of property & construction to become the county’s first and second industries with the highest overall turnovers. A significant part of the retail & wholesale sector’s rise can be attributed to SGN Ltd, which grew by £168m in the last year alone.

The report did find that overall figures in areas such as debt and cash were less favourable compared to 2019, however they were significantly better than in 2021. This indicates that businesses are continuing to recover from the low income and high expenditure levels experienced during the COVID-19 lockdowns,

Doug Bentley, Corporate Finance Partner at Grant Thornton UK LLP, said: “Thanks to the Essex Limited report, we can see that the county’s leading companies have now moved ahead of where they were before the COVID-19 pandemic began. This comes despite another turbulent 12 months, which is a real testament to the agile, efficient and dynamic nature of these businesses.

“While companies dipped into their cash and increased borrowing to get through the lockdowns, the report shows us that they are now increasing their reserves – which have gone up by a remarkable £250m in the last year. In addition, businesses have worked hard to build up their fixed assets and develop vital infrastructure, meaning that they’re in many ways stronger now than before the pandemic hit.”

Rob Thomson, Tax Director at Grant Thornton UK LLP, said: “While there are still many economic headwinds ahead, the Essex business landscape has proved that it is resilient and creative. What’s more, the Chancellor’s support for energy security, infrastructure developments and R&D in the recent Autumn Budget could prove advantageous for businesses moving forward.

“Whatever is on the horizon, the Essex Limited report can give us confidence that the county’s top companies are well prepared to meet the challenges and maximise the opportunities that 2023 brings.”

Adam Jones, Partner in the Corporate Team at Birketts, said: “We can be very positive about the direction of travel that this report shows. Our experience acting for leading Essex businesses confirms that positive progress on growth has continued since these figures were last published. Essex businesses have always shown a particular ambition to make the most of every situation, and while the current economic climate has its challenges, it also has its opportunities, which bodes well for the future.”

This was posted in Bdaily's Members' News section by John Robson .