Four months ago, the UK electorate voted to leave Europe. It was a momentous decision and one that placed a direct spotlight on the ability of indigenous businesses to grow the economy over the next few years. Given this economic uncertainty, the performance of firms such as those featured on the 2016 Fast Growth 50 list is becoming more and more important in generating wealth and employment in all parts of Wales.
Since the project was established in 1999, the 551 firms that have appeared on the eighteen lists have been estimated to create tens of thousands of jobs and generate an estimated £18 billion of additional turnover annually, much of which is spent in their local area.
As the latest Barclays Entrepreneurial Index has shown, 23.4 per cent of the companies with annual revenue between £2.5m-£100m in Wales are designated as high growth (i.e. having a minimum 33 per cent increase in turnover over three years). This is the second highest figure in the UK and shows that you don’t have to be located in the South East of England and London to grow your firm successfully.
This year’s Fast Growth 50 firms was celebrated at the annual gala dinner, held at the Mercure Holland House Hotel in Cardiff and sponsored by Barclays Bank. Now one of the biggest Welsh business events of the year, the awards are unique in that the winners are judged solely by the sales growth of the companies over a three-year period.
Yet again, a range of businesses were recognised in front of an audience of 500 guests for being the fastest growing in their sector. More importantly, eleven firms were recognised for their sustainable growth having appeared on consecutive Fast Growth 50 lists for at least three years.
In fact, it was fantastic to have the Fast Growth 50 firms celebrating their achievements with their staff, customers, family and friends and helping to make it a very special night for everyone. Indeed, to be described as one of the fifty fastest growing firms in Wales out of a business population of more than 230,000 firms is an achievement that all businesses should aspire to.
Congratulations in particular to Aerfin of Caerphilly for becoming the first company from Caerphilly to become the fastest growing firm in Wales with an incredible growth rate of 1044.3% over the period 2014-16.
The other award winners on Friday in their respective categories were:
- Fastest growing firm in manufacturing and engineering - Pro Steel Engineering
- Fastest growing firm in business-to-business Services - Aerfin
- Fastest growing firm in professional and financial services - Activequote
- Fastest growing firm in consumer services - Veezu
- The Peter O Toole award for the fastest growing firm in retail services - The Powersite
- Fastest growing firm in construction and building services - Brenig Construction
- Fastest growing mid-to large sized firms - Aerfin
- Fastest growing firm in creative and knowledge industries - Ubiquity Group
- Fastest growing firm in recruitment services - Yolk Recruitment
- Fastest growing firm in Cardiff - CP Hire
- Fastest growing international business - Aerfin
- Fastest growing firm in tourism and leisure - Zipworld
So what impact did the Fast Growth 50 have on the Welsh economy?
In 2015, they generated a collective turnover of nearly £700 million and employed over three thousand people. More importantly, they had an additional £378 million in turnover during the period 2013-2015 at an average growth rate of 117 per cent and created 1,500 new jobs, demonstrating their continuing importance across the Welsh economy.
The average age of a fast growing Welsh firm is ten years old and whilst seventeen firms are new (aged five years or less), there are two companies that have been in business for more than a century with the oldest - Watkin Jones PLC - first established in 1791.
What is interesting about this year’s list is the high number of firms that had a turnover of £10 million or more in 2015. This suggests that there is an emerging group of high potential mid-size firms that could become leaders in their industries over the next decade.
In terms of those sectors that are making an impact in Wales, creative and knowledge firms are finally making headway for the first time in years, with nine fast growing businesses in this sector. Given the importance of construction to any post-Brexit recovery, there are eight firms involved in the building sector although there are only three manufacturing companies on the list. The services industry dominates again in the often under-appreciated business to business services (eight firms), recruitment services (six firms), retail services (six firms) and professional and financial services (three firms).
Four fast growing businesses from the important tourism and leisure sector are also on this year’s list.
Geographically, fast growing firms were to be found in eighteen Welsh counties. Cardiff remains the main centre for fast growing firms in Wales with seventeen firms being based in the capital city, a small increase on 2015. There is less concentration in the cities of Newport (three firms) and Swansea (three firms). Only seven fast growth firms were located in North Wales.
However, for the second year in succession, the four local authority areas of Ceredigion, Denbighshire, Merthyr Tydfil and Torfaen had no Fast Growth 50 firms located in their boundaries.
Therefore, the list year’s list shows the diversity and variety of businesses that are growing quickly and all fifty firms featured this year are a shining example of all that is good in entrepreneurship and innovation in the Welsh economy.
Their stories are a real inspiration so please go to the Wales Fast Growth 50 website to read about those great businesses that are making a real difference in a range of sectors across our nation.