IQ-Magazine-Issue-15

IQ growth report
SUFFOLK LTD
Grant Thornton’s detailed analysis of the financial
performance of Suffolk’s 100 largest independent
companies, businesses fundamental to the county’s
local economy, is a valuable indicator of the health of
Suffolk’s economy.
Representing companies across the six sectors of
Retail & Wholesale Distribution; Services; Transport
& Motor Retail; Food & Agriculture; Property &
Construction; and Manufacturing, Suffolk Ltd has
continued to build very positively on its post-recession
emergence. Current results show that companies are
increasingly bullish about the future, with investment
levels increasing. Suffolk’s businesses have not only
survived the downturn, but now look to be prospering
with cautious new optimism. Figures show significant
growth across the county, with over 25% of companies
in the top 100 seeing growth of over 20% in their
turnover year on year.
Turnover increased overall by a healthy 6.3% from
£4.17bn to £4.43bn, with the top three performing
sectors being Transport & Motor Retail; Retail &
Wholesale Distribution & Food and Agriculture. 38
companies enjoyed a growth in turnover of more
than 10%, with seven companies turning in increased
turnover of more than 50%. All six sectors saw a
growth in turnover ranging from 17.2% for Property
& Construction to just 0.6% for Retail & Wholesale.
Operating profit also grew overall by 11.4% from
£211m to £235m, with profit before tax increasing
by 6.2% from £201m to £214m. The top three
performing sectors for profit were Retail & Wholesale
Distribution; Food and Agriculture, & Transport &
Motor Retail.
The balance sheet for Suffolk Ltd strengthened
marginally with fixed assets increasing from £1.33bn
to £1.4bn or 5.7%, while current assets increased by
a similar amount from £1.61bn to £1.71bn.
Ian Thoroughgood, Associate Director, Suffolk,
Grant Thornton UK LLP concludes, “Once again
Suffolk Ltd has shown its ability to remain buoyant
and contribute positively towards the county’s overall
economic prospects. Companies showed confidence
about the future which was reflected through
increased debt used to fund investment for continued
growth.”
Many companies which stripped out waste and
unnecessary costs during the recessionary period
are now in a good position to take advantage of any
continued upturn in the UK economy. Furthermore,
there are plenty of businesses outside the Top 100
which have enjoyed recent significant growth, which
are the future members of the Suffolk Ltd.
However, he warns, “Probably the single biggest
concern is the shortage of skilled labour and the
analysis has shown how wage costs have had to
increase across almost all sectors in order to retain
and attract the right people. This is an issue which
Government needs to address urgently in order not to
inhibit future growth.”
Suffolk and Cambridgeshire each have their
own strengths. Although Cambridgeshire
could be seen as a more vibrant business
community, with its entrepreneurial ethos
and thriving technology sector, there is no
doubt as to Suffolk’s continuing success. As
Grant Thornton’s report concludes, Suffolk’s
economy may not grow as fast, but it’s
resilient and doesn’t shrink the most in times
of economic difficulty.
issue 15 | page 17