Expert View
RESILIENCE DELIVERS CAUTIOUS OPTIMISM
By Dean Rodgers Accounts and advisory director PM+M
Our analysis of the Hot 100 indicates companies are grappling with increased costs and heightened economic uncertainty, added to more recently by the General Election.
These factors have collectively contributed to a slight decline in the overall profit margins relative to sales. In turn this highlights the challenging economic conditions businesses are experiencing, including the rising cost of living and operational expenses.
Since last year, we have seen six of the Hot 100 businesses acquired, with four of these included in the top ten. Such acquisitions often lead to a reshuffling in the market, impacting competition and potentially driving innovation.
Ten companies have also moved out of the top tier because they are now larger than the SME definition, and 29 have either dropped down the rankings or ceased filing profit and loss accounts altogether.
This indicates a level of volatility and market churn which can be attributed to the economic pressures and uncertainty companies are facing.
However, it’s worth noting that 53 53 New entry J&J Design, Rawtenstall
J&J Design specialises in town planning, offering a range of consultancy services including surveying, feasibility studies, support with planning applications and appeals. The company increased revenues by 75 per cent to hit a record £21m. High-growth areas included warehousing, residential and the reopening of the high street which increased the number of shop fit-outs.
52 2023: 70 New Horizons, Preston
New Horizons operates care homes for young people, with specialist services available for those with challenging behaviour, learning difficulties, various disorders and syndromes, or those who have experienced crisis or trauma.
Hillcroft, Carnforth 51 51 2023: 32 Amari Super Cars, Preston
Amari is the retail operation of a supercar-loving family, led by husband-and-wife team Sheikh Amari and Saba Syed. The company buys and sells the world’s most exclusive marques, such as Aston Martin, Bugatti, Ferrari, Lamborghini, McLaren and Porsche. Amari operates a 15,000 sq ft showroom which holds around 70 vehicles. Total sales for the year were £32m.
Hillcroft operates six nursing and care homes in the Lancaster and Morecambe area. The company continues to recover from the restrictions implemented as a result of the Covid-19 pandemic, with occupancy levels increasing to 87 per cent.
46 2023: 62 Heathside Trading, Blackburn
Heathside buys and sells branded merchandise including toys, housewares and pop culture collectables, serving the discount retail trade. Products are sourced from around the world, with around one-third being sold again to overseas customers. Total revenues increased to £17.2m.
LANCASHIREBUSINES SV
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companies have maintained their presence in the list, demonstrating resilience and the ability to navigate the current economic landscape.
Despite the economic headwinds, employment figures have only seen a slight drop of two per cent when compared with 2023 suggesting that businesses are still investing in their workforces.
The resilience shown by the majority of the companies on the list, combined with steady levels of employment, provides a foundation for cautious optimism.
Overall, businesses may need to adopt more strategic approaches to cost management and efficiency improvements to maintain profitability – innovation and adaptation to changing market conditions will be critical.
Despite the challenges, there are positive signs on the horizon. Falling inflation and the anticipation of an interest rate reduction suggest potential improvements in the economic landscape.
We are encouraged by the cautious optimism already evident amongst our clients and in the wider marketplace.
50 New entry
A&G Precision and Sons, Poulton-Le-Fylde
A&G is a third-generation family business which has been manufacturing high precision components for more than 30 years. The company serves markets including civil and defence aircraft, oil and gas, pharmaceuticals and Formula 1.
49 New entry Hannah Food Services, Skelmersdale
Hannah Food Service is an independent, family-owned business supplying more than 3,500 core lines of frozen, ambient and chilled products to the food service, fast food and wholesale sectors across the UK. The business began in 1977 serving fish and chip shops and today operates out of a £3m purpose-built facility with annual revenues in excess of £51m.
48 New entry IT Works, Preston
IT Works is a group of recruitment companies originally established in 2004. IT Works Recruitment specialises in the IT sector, specifically ERP and HRIS professionals across the UK, while IT Works Recruitment Europe provides a similar service on an international scale from its base in Germany. IT Works Health specialises in digital roles in the healthcare sector, and is a Crown Commercial Services Supplier with the NHS as a customer. The company achieved pro rata growth over the year, and the total revenues of £25.8m were further boosted by a financial year which was extended by three months.
47 2023: 46
49
HOT 100
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