BGF identifies 4,000 UK high growth companies

The Business Growth Fund (BGF) has launched its own monitor of growth companies.

Stephen Welton, CEO of the Business Growth Fund

Stephen Welton, CEO of the Business Growth Fund

The Growth Companies Barometer finds that there are 4,000 mid-sized small and medium-sized enterprises (SMEs) with high levels of growth across the UK.

In identifying 'high growth' companies, the Barometer has classified 4,000 businesses which have turnovers of between £2.5 million and £100 million, and have each expanded by at least 33 per cent in the last three years (see Table 1).

Table 1
Turnover Total population High growth firms Incidence of HG Firms
£2.5m - £5m 6,268 1,057 16.9%
£5m - £10m 6,600 1,098 16.6%
£10m - £20m 5,604 871 15.5%
£20m - £50m 4,932 758 15.4%
£50m - £100m 2,129 326 15.3%

The BGF, which has to date made eight investments from its bank-backed £2.5 billion coffer, says the findings demonstrate the 'underlying resilience of UK entrepreneurialism.’

Further findings show that 25,533 UK companies with turnovers between £2.5 million and £100 million exist, with 16 per cent of those categorised as high growth.

The BGF finds that the most growth companies reside in London and the South East, but says that fast growing companies are currently found across all regions of the UK and in a diverse range of industries.

There are 8626 companies in London with a turnover between £2.5 million and £100 million, with 4332 in the South East.

Stephen Welton, CEO of the BGF, says that the findings show that in spite of market headwinds there is a 'steady base' of UK SMEs and fast growing UK companies that are continuing to thrive.

He adds, 'As growth capital investors in high growth companies, we are encouraged by the fact that there is a clear addressable market. However we are also mindful that there is room for improvement.

'The question for us is how to expand the number of high growth companies and help those that are already demonstrating that level of growth move further.'

Going forward the BGF hopes to make 25 investments this year, and 30-40 per annum in the years to come.

So far the fund has closed deals in the optical instruments, restaurant, telecoms and manufacturing sectors.