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Profit Track 100 research report 2017 1

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Research report 2017Britain's private companies with the fastest-growing profits

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© 2017 Profit Track 100 www.fasttrack.co.uk

Profit Track 100 research report 2017 i

CONTENTS

INTRODUCTION 1Top 10 Profit Track 100 companies 1

EXECUTIVE SUMMARY 2

KEY STATISTICS 3Growth in profits 3Margins 4Sales 4Staff & job creation 5Regional breakdown 5Foundation dates 5 Sector breakdown 6Industry breakdown 7 Majority-ownership 7

EIGHTEEN YEARS OF PROFIT TRACK 100 8

KEY THEMES & SELECTED COMPANY PROFILES 10 International expansion 10 Regional strength 11External capital 12Housebuilding and construction 13Manufacturing 14 Technology 15 Well-known brands 16 2017 PROFIT TRACK 100 LEAGUE TABLE 17

ONES TO RECOGNISE 21

METHODOLOGY 22 Qualification criteria 22 Research approach 22 Disclaimers 22

SPONSORS & MEDIA PARTNER 23

ABOUT FAST TRACK 25Compiler & publisher 25The authors 25 Fast Track 26

CONTACT DETAILS 26



Top 10 Profit Track 100 companies

Profit = operating profit

INTRODUCTION

This is the 18th year of The Sunday Times Profit Track 100, which has become the definitive league table of Britain’s private companies with the fastest-growing profits. BDO is the title sponsor and UBS Wealth Management is the main sponsor.

The 2017 Profit Track 100 ranks companies based on their average operating profit growth over three years, either from 2012 to 2015, or 2013 to 2016.

Despite the backdrop of turbulent international markets and uncertainty following the Brexit vote, this year’s league table findings demonstrate that companies have benefitted from a period of sustained economic growth. The companies' average profit growth was 83% a year – a record high, with combined profits of £1bn.

Companies on the table include household names such as domestic appliance manufacturer Gtech (No 11); restaurant chain Bill's (No 36); and gym operator PureGym (No 60).

The No 1 company is Paymentsense, which enables businesses to process payments by providing ecommerce services and the latest chip-and-pin machines. It grew profits 203% a year from £504,000 in 2013 to £14.1m in 2016.

These figures illustrate the dynamic contribution of the Profit Track 100 companies to the British economy, and are outlined in more detail in the following pages.

Co-founders Jan Farrarons and George Karibian of payment processing services Paymentsense tops the Profit Track 100 with an average profit growth over the past three years of 203% pa

Rank2017

Rank2016

Latest profits

£000

3yr average annual profit

growthFYEHQ locationActivityCompany

Latest sales£000 Staff Founded

1 Paymentsense Payment processing services West London Mar 16 203.41% 14,075 44,554 203 2009

2 Avon Group Seal manufacturer Bristol Mar 16 148.51% 11,145 48,295 504 1979

3 Heatherwick Studio Architect & designer Central London Mar 16 141.16% 10,435 27,843 180 1994

4 Howarth Timber Group Timber products supplier Leeds Mar 16 133.38% 9,292 169,232 914 1840

5 Your World Recruitment Group Healthcare recruitment consultancy Central London Dec 15 132.21% 6,895 98,232 174 2005

6 Muntons Malt manufacturer Suffolk Jan 16 129.46% 9,424 91,479 315 1921

7 Bruntingthorpe Proving Ground Aerodrome & vehicle test track Lutterworth Jun 15 114.49% 5,200 18,772 62 1983

8 Plan B Healthcare Recruitment consultancy Central London Sep 15 113.60% 4,938 24,392 43 2009

9 HH Global Marketing services provider South London Mar 16 109.35% 5,845 202,181 656 1991

10 67 Sahara Presentation Systems Audio-visual products supplier Kent Dec 15 107.18% 4,637 38,265 70 1924



EXECUTIVE SUMMARYOverview• The Profit Track 100 companies, on average, increased

their profits 83% a year over the last three years of available accounts, from a total of £170m to £1bn

• Profit growth across the companies has been driven mainly by an improvement in reported margins. These have increased to an average of 16% in their latest year, from an average of 7% three years ago

• Combined sales of the 100 companies were up by 88% over the last three years, from a total of £4.1bn to £7.8bn

• 45 of the companies are majority-owned by an entrepreneur and/or founders, while 20 are family-owned and 17 are owned by private equity

• Services (41%) and manufacturing (23%) are the dominant sectors on the league table

• The majority of the companies are based in London (25) and the southeast (15)

Key themesInternational expansion: More than half of the companies have grown profits with a contribution from international operations [Page 10]

Regional strength: More than half (60) of the companies are based outside of London and the southeast, including 13 of the top 20 [Page 11]

External capital: A fifth of the companies have raised external capital, whether from private equity, venture capital firms or corporate investors [Page 12]

Housebuilding and construction: There are 28 companies operating in a building-related industry, including eight housebuilders [Page 13]

Manufacturing: There are 25 manufacturers on the league table, the majority of which make some or all of their products in the UK [Page 14]

Technology: There are 12 companies operating in a technology sector, many developing new software to improve the operating processes of their corporate clients [Page 15]

Well-known brands: The league table features a number of household names, some of which are making repeat appearances on the Profit Track 100 [Page 16]

Growth in profits

Number of companies in each range of compound annual growth rate (CAGR) of profits over latest 3 years

>=140%

115%–140%

85%–114%

50%–84%

32

Characteristics of a typical Profit Track 100 company

ProfitsAverage growth over three years 83% pa

Profits in 2015/16 £9.8m

Profits in 2012/13 £1.7m

Profits margin latest year 16%

Profits margin base year 7%

SalesAverage growth over three years 29% pa

Sales in 2015/16 £78m

Sales in 2012/13 £41m

StaffTypical number of staff in 2015/16 500

Typical increase in staff over three years 16% pa

Company characteristicsRegion Greater London (25%)

Sector Services (41%)

Profits = operating profit

3

3

62



KEY STATISTICS

Growth in profits• Profit Track 100 companies, on average, increased their

profits by 83% a year over their last three years, from a combined £170m to £1bn

• This average rate of profit growth is higher than any previous Profit Track 100 league table, where the rate has typically ranged from 50% to 75% pa

• Companies had to work harder to gain a place on this year’s league table. Profits at the 100th ranked company (hardwood flooring specialist Havwoods) grew an average of 57% a year, compared with the 54% minimum required in 2016 and 43% in 2015

• The top-ranked company, payment processing services provider Paymentsense, boosted profits an average 203% a year from £504,000 in 2013 to £14.1m in 2016

• Housebuilder Fairview (No 86) achieved the highest profits on the table with £65m, on sales of £178.2 in 2015. The group specialises in developing housing on brownfield sites in London and the southeast of England

• 24 companies had profits of £10m or more, including hotelier Britannia Hotels (No 12) with £34.2m, and analytical services laboratory LGC (No 25) with £48.8m. 42 companies on the table had profits between £5m and £10m

• The biggest absolute increase in profits was recorded by Churchill Retirement Living (No 21). The retirement housebuilder increased profits by £54.3m to £62.8m between 2013 and 2016, with sales growing from £61.2m to £187m in the same period

RankCompany Activity

Latest profits,

£m FYE

86 Fairview Housebuilder 64.8 Dec 15

21 Churchill Retirement Living Housebuilder 62.8 Jun 16

25 LGC Analytical services laboratory 48.8 Mar 16

12 Britannia Hotels Hotelier 34.2 Mar 16

14 Balmoral Group Polymer engineer and manufacturer 32.9 Mar 16

92 Hill Housebuilder 30.8 Dec 15

80 Notemachine Cash machine operator 22.2 Jun 16

44 Story HomesHousebuilder 22.1 Mar 16

96 Endava IT services provider 19.9 Jun 16

82 Enra Group Specialist loan provider 19.0 Dec 16

10 companies with the highest profits

Range of profits

Number of companies in each range

6

>=£50m

£20m–£50m

£10m–£20m

£5m–£10m

£3m–£5m

16

2

42

34

Profits = operating profit



Margins• Profit growth across the companies has been mainly driven

by an improvement in reported margins. These increased to an average of 16% in their latest year, from an average of 7% three years ago

• 61 companies increased profit margins by more than 2% points in their latest year. This compares with 52 companies last year

• Nine companies had profit margins of more than 30%. Companies include short-term reserve electricity provider Green Frog Power (No 34), which has a 75% margin; and online financial markets broker Activtrades (No 90), which has a 37% profit margin

• The company with the lowest margins, at 2.4%, is fuel card provider The Right Fuelcard Company (No 46), with profits of £3.3m, and gross sales of £136.9m

Sales• Total combined sales were up by 88% from £4.1bn in 2012/13

to £7.8bn in 2015/16

• Only two companies registered a fall in sales between 2012/13 and 2015/16, analytical services laboratory LGC (No 25) and housebuilder Fairview (No 86)

• The company with the biggest sales in its latest year was Carey Group (No 41). The building contractor’s turnover reached £430.7m in 2016

• Gym operator PureGym (No 60) recorded the highest growth in sales which increased an average 95% a year from £16.8m in 2012 to £125.2m in 2015

• The company with the lowest sales on the league table was precision valve manufacturer ChargePoint Technology (No 27). The Liverpool group was acquired by private equity fim LDC in January and reported sales of £11.4m in 2016, with profits of £3.4m

Rank Company Activity

Profit margin

FYE

34 Green Frog Power Short-term reserve electricity provider 74.6% Mar 16

82 Enra Group Specialist loan provider 48.6% Dec 16

33 Animal Friends Pet InsurancePet insurance provider 42.7% Dec 15

12 Britannia Hotels Hotelier 40.6% Mar 16

3 Heatherwick Studio Architect and designer 37.5% Mar 16

Rank Company Activity

Latest sales £m

FYE

41 Carey Group Building contractor 430.7 Mar 16

92 Hill Housebuilder 303.8 Dec 15

25 LGC Analytical services laboratory 247.5 Mar 16

85 Reward Gateway Employee engagement services 225.0 Jun 16

9 HH Global Marketing services supplier 202.2 Mar 16

5 companies with the highest profit margins

5 companies with the biggest sales

Profit margins

Number of companies in each margin range

18

>=30%

20%–29%

10%–19%

5%–9%

0%–4%

42

9

22

9



Staff and job creation• The 100 companies employ a total of 47,700 employees (vs

65,100 in 2016), resulting in average profits per employee of £20,600 in the latest financial year (vs £23,550 in 2016)

• Together, the 100 companies added 17,300 jobs during the last three years, although in some cases, employees were taken on as part of an acquisition (vs 24,800 in 2016)

• The largest employer is leisure services manager Castle View (No 83), with 4,746 staff

• The company with the biggest change in employees is PureGym (No 60). The gym operator grew its headcount from 229 in 2015 to 960 employees in 2016, following the acquisition of LA Fitness for £74m in 2015

• 26 of the companies employ more than 500 staff, while seven companies have fewer than 50, such as marine technology consultancy MAATS Tech (No 52) with 40

Regional breakdown

• London is the most popular destination with 25 companies headquartered in the capital, compared to 22 last year

• The southeast of England has the second highest number of companies with 15 based there

• 13 of the top 20 companies on the league table are located in regions outside London and the southeast, including appliance manufacturer Gtech (No 11) based in Worcestershire; polymer engineer and manufacturer Balmoral Group (No 14) based in Aberdeen; and seal manufacturer Avon Group (No 2) based in Bristol

• Four out of the six companies with the biggest profit margins are based in regions outside London and the southeast, including Wiltshire company Animal Friends Pet Insurance (No 33) with profits of £7.6m in 2015, representing a margin of 43%

Foundation dates

• The Profit Track 100 companies are of very diverse ages, with an average foundation date of 1980, although this is skewed by a small number of much older companies

• One of the oldest league table companies is carpet manufacturer Brintons (No 67). Founded in 1783, the company was family-owned until 2011, when it was acquired by US private equity firm Carlyle for £40m

• The youngest company is The Right Fuelcard Company (No 46). Founders Jonathan Turner, 51, and Liz Slater, 51, used their experience running a fuel distribution firm, to set up this fuel card provider in 2011

Number of employees

Number of companies in each staff range

1,000–5,000

500–999

250–499

100–249

<100

15

18

11

Foundation dates

Number of companies in each range

After 2000

1980–1999

1950–1979

1900–1949

Before 1900

20

32

36

Regional breakdown of HQ in UK

Northeast

MidlandsN. Ireland

Wales

Southwest

Scotland

East

8

7

813

Greater London25

4

5

Northwest

4

15Southeast

11

30

26

4

8



Sector breakdown

• The two largest sectors are services, with 44 companies, and manufacturing with 25

• Services (44) businesses encompass a wide range of industries from IT recruitment consultancy Frank Recruitment (No 77), gas turbine servicer Greenray (No 38) to brand agency Principle (No 79)

The service sector represents combined profits of £441m and employs 25,800 staff

• Manufacturers (including outsourced) (25) include washroom manufacturer Grant Westfield (No 81), bottled drinks manufacturer Radnor Hills (No 49), and carpet manufacturer Brintons (No 67)

The manufacturing sector represents combined profits of £179m and employs 9,700 staff

• Construction (14) includes construction contractors Readie Construction (No 42), Morrisroe Group (No 23), and Carey Group (No 41)

These companies represent combined profits of £264m and employ 3,300 staff

• Retailers (12) range from motorcycle accessories retailer J & S Accessories (No 88) to pre-owned watch retailer Watchfinder (No 48) and cards and gifts retailer Paperchase Products (No 55)

The retail sector represents combined profits of £63m and employs 9,200 staff

• Wholesalers (12) include fishing tackle supplier Fox International (No 43), festive decorations supplier Premier Decorations (No 65), and audio-visual products supplier Sahara Presentation Systems (No 10)

The wholesale sector represents combined profits of £72m and 2,400 staff

Sector breakdown

(last year's figures in brackets)

Construction 14 (15)

Wholesale 12 (6)

Retail 12 (23)

Services 44 (41)

Note: where companies are deemed to operate in more than one sector, a second sector is chosen. In total 7 companies operate in two sectors. Each sector is given an equal weighting in the above analysis

Manufacturing 25 (24)



Industry breakdown• Building related (28). Examples include Tobermore Concrete

Products (No 30) and brick supplier Brickability (No 56). They also include service providers such as architect Heatherwick (No 3) and specialist joiner MJM Interior Build (No 89)

These companies represent combined profits of £340m and employ 7,600 staff

• Consumer goods (14). They include furniture supplier Symphony (No 24), bed manufacturer Silentnight Group (No 47), and household goods retailer Minky (No 94)

League table companies in this industry represent combined profits of £92m and employ 8,200 people

• Computers and electronics (9). These include payment processing services provider Paymentsense (No 1), audio-visual products supplier Sahara Presentation Systems (No 10), and IT services provider Claranet (No 93)

These companies have combined profits of £95m and employ 5,300 staff

Majority ownership• Entrepreneurs and founders have a majority ownership of 45

companies (2016: 64) in the Profit Track 100

Examples include Scotland’s largest independent restaurant operator Di Maggio’s (No 29), which was founded by Joe Conetta, 72, and his nephew Mario Gizzi, 57, in 1983; and Harvey Water Softeners (No 87), which was founded by plumber Harvey Bowden, 67, in the 1970s

• 20 companies on the league table are family owned i.e. they remain owned by the founder’s children or other descendents (2016: 12)

Examples include malt manufacturer Muntons (No 6), which is owned by the Wells family and run by managing director Alan Ridealgh, 60; and medical device manufacturer Talley Group (No 63), which was founded in 1953 by Henry Talley, and is now owned and run by grandsons Chris and John Evans, 54 and 50

• 17 of the companies are majority owned by private equity (2016: 13)

Examples include employee engagement services provider Reward Gateway (No 85), which is majority owned by Great Hill Partners and run by founder and chief executive Glenn Elliott, 44. Others include cash machine operator Notemachine (No 80), which was founded in 2006 by chief executive Peter McNamara, 66, and is owned by Corsair Capital

Industry breakdown

(last year's figures in brackets)

Finance 5 (5)

0

20

40

60

80

100

Leisure 3 (3)Media 3 (3)

Healthcare 5 (4)

Business services 7 (7)

Other 12 (12)

Engineering 6 (6)

Food & drink 8 (5)

Building related 28 (29)

Consumer goods 14 (16)

Computers & electronics 9 (10)

Ownership

Number of companies by majority ownership type(last year's figures in brackets)

Family 20 (12)

Management/employees 17 (11)

PE and/or VC 17 (13)

Entrepreneur and/or founder 45 (64)

Business angels 1 (0)



EIGHTEEN YEARS OF PROFIT TRACK 100Profit Track 100 was launched 18 years ago to recognise the success of Britain’s private companies with the fastest-growing profits. Since its launch, more than 1,300 different companies have appeared on the league table. The vital statistics of the league table companies have changed significantly over the last 18 years. The combined profits figure for all companies has increased from £700m to £1bn, and profits per employee have risen from £12,000 to £20,600.

Stock market flotations

43 companies have floated on the stock market. Examples include (in league table appearance order):

• Sophos, the security software developer, first featured in 2002 with profits of £8m, floated in 2015 and is now valued at £1.3bn

• Cineworld, the multiplex cinema operator, featured in 2003 with profits of £6m, floated in 2007 and is now valued at £1.8bn

• Moneysupermarket, the financial website operator, featured in 2007 with profits of £23m, floated in the same year, and is now valued at £1.9bn

• Virgin Money, the bank, first featured in 2007 with profits of £9m, floated in 2014 and is now valued at £1.4bn

• B&M Retail, the discount retailer, first featured in 2010 with profits of £13m, floated in 2014 and is now valued at £3bn

• Card Factory, the greeting cards retailer, first featured in 2011 with profits of £51.5m, floated in 2014 and is now valued at £915m

• Markit, the financial information services provider, first featured in 2012 with profits of £88.5m, floated on Nasdaq in 2014 and, following its merger with IHS in March last year, is valued at $17bn

• Patisserie Valerie, the patisserie and café operator, featured in 2012 with profits of £6m, floated in 2014 and is now valued at £310m

Acquisitions and mergers

Other Profit Track 100 companies have been acquired, including innocent, which sold a majority stake to Coca Cola in 2013, valuing the company at £440m; Kelway, the IT services provider – American IT wholesaler CDW acquired 65% in 2015 valuing the group at £420m; Euro Garages, the fuel forecourt retailer, which merged with European Forecourt Retail last year, valuing the group at £1.3bn; and MacDonald Humfrey, the technology systems integrator which was bought by NYSE company L-3 Communications for £224m in 2016.

How Top Track 250 has changed

2000

Total profits

£700m £1bn

57,700 47,700

55% 83%

124% 203%

Total employees

Average profit growth pa

Top company growth rate pa

2017

Brothers Zuba and Mohsin Issa, co-founders of Euro Garages, which first featured in 2008 and last year merged with European Forecourt Retail, in a £1.3bn deal



The first Profit Track 100

Companies that appeared in the first Profit Track 100 league table in 2000 include:

• Carphone Warehouse, the mobile phone retailer, featured with profits of £15m, floated in the same year and is now valued at £3.6bn, following its merger with Dixons

• Dunelm, the soft furnishings retailer, featured with profits of £7m, floated in 2006 and is now valued at £1.3bn

• Dyson, the appliance manufacturer, featured with profits of £24m, and last year featured on Top Track 100 with profits of £386m on sales of £1.8bn

• Travelex, the foreign exchange operator, featured with profits of £6m and was acquired by the owner of UAE Exchange Bavaguthu Shetty and Centurion, an Abu Dhabi-based investment vehicle, for £1bn in 2014

Failures

Fewer than 10% of Profit Track 100 companies have gone bust over the years. Companies that have failed include Focus DIY, which featured in 2002 but fell into administration in 2011 after having grown to be the fourth largest DIY retailer in the UK; and fashion retailer Republic, which featured in 2011 but fell into administration in 2013, before being acquired by Sports Direct.

Profit Track 100 alumni

Dyson featured in the first Profit Track 100 with profits of £24m, and featured on last year’s Top Track 100 with profits of £386m on sales of £1.8bn



KEY THEMES & SELECTED COMPANY PROFILESOn the following pages we profile examples of companies that demonstrate some of the key themes from this year’s league table.

INTERNATIONAL EXPANSIONMore than half (53) of the companies have international operations. They include IT services provider Claranet (No 93), which has 18 offices in six European countries after making 13 acquisitions across the continent since 2014; and fishing tackle supplier Fox International Group (No 43), which sells its range of 3,000 products to retailers in 30 European countries. Other examples are profiled below.

The award-winning design for the UK pavilion at the 2010 Shanghai Expo helped Heatherwick Studio (No 3) win international projects

§ three year compound annual growth rate * supplied by company

3 Heatherwick Studio Architect and designer

Has been appointed to design Google's HQ in King's Cross and in California

Location Central LondonFYE Mar 16 CAGR§ 141.16% Latest profits £10.4mBase profits £0.7mLatest sales £27.8mEmployees 180

The new London red bus and the 2012 Olympic cauldron are just two of the projects that this London based company was responsible for. The company is now working on the garden bridge that will cross the Thames in the capital's centre. Founder and chairman Thomas Heatherwick, 47, is leading the group's international expansion with active projects in Europe, Asia, North America and Africa helping profits rise to £10.4m in 2016.

9 HH Global Marketing services supplier

Opened a new Hong Kong office to support its Asia Pacific business in November last year

Location South LondonFYE Mar 16 CAGR§ 109.35% Latest profits £5.8mBase profits £0.6mLatest sales £202.2mEmployees 656

Counting Google and Bayer among its clients, HH Global is an international group providing marketing and media services for global brands. Robert MacMillan, 45, is chief executive of the London business, which trades in more than 40 countries across six continents. Last year, the company opened six offices in Latin America to support a substantial new contract with Unilever, and profits rose to £5.8m.

52 MAATS Tech Marine engineering consultancy

Recently completed delivery of 11 converted ships for customers in Brazil

Location WinchesterFYE Sep 16 CAGR§ 76.11% Latest profits £8.4m*Base profits £1.5mLatest sales £33.3mEmployees 40

Winchester-based Maats Tech specialises in the design and conversion of ships that work on subsea construction, and cable and pipe laying. Founded by the oil and gas sector veteran John Holt, 77, the company increased profits to £8.4m in 2016, helped by the delivery of several completed vessels to customers in Brazil and Norway. It plans to expand its specialist cable laying business to service the developing offshore wind industry.



REGIONAL STRENGTH Britain’s deep pockets of expertise are based all around the country, with more than half (60) of the companies based outside London and the southeast – from manufacturing in the Midlands to energy innovation in Scotland. Thirteen of the top 20 companies are located outside London and the southeast, from Muntons (No 6) in the East; hotelier Britannia Hotels (No 12) in the northwest; and online sports goods retailer Net World Sports (No 66) in Wales. Other examples are profiled below.Elaine Fairfax, founder of Wiltshire-based Animal Friends

Pet Insurance (No 33), reported profits of £7.6m in 2015


11 Gtech Appliance manufacturer

Has sold more than 22m domestic appliances in 19 countries

Location WorcestershireFYE Nov 16 CAGR§ 105.83% Latest profits £9.2m*Base profits £1.1mLatest sales £91.2mEmployees 138

Inventor Nick Grey, 48, left the vacuum cleaner maker Vax in 2001 to design his own cordless floor sweeper. Taking on established brands such as Dyson and Hoover, his company has developed cleaners that are cordless, lightweight and easy to use such as its AirRam vacuum. The Worcester business also makes cordless garden tools and an electric bicycle. Having risen strongly, profits dipped to £9.2m last year due to unfavourable exchange rates, but are expected to hit £20m this year.

29 Di Maggio's Restaurant group

Plans to open a new venue in Glasgow, along with two new Café Andaluz in early 2018

Location GlasgowFYE May 16 CAGR§ 89.03% Latest profits £6.3mBase profits £0.9mLatest sales £33.8mEmployees 784

Scotland’s largest independent restaurant operator was founded by Joe Conetta, 72, and his nephew Mario Gizzi, 57, in 1983, when they opened their first Italian-American eatery in Glasgow’s West End. Today, Mario runs the business alongside Joe's son Tony, 43, and they have expanded the group to 18 family-friendly restaurants and five food court outlets. Organic growth and new restaurants contributed to earnings of £6.3m in 2016. This year, they will open new sites in Edinburgh and Newcastle.

33 Animal Friends Pet Insurance Pet insurance provider

The Wiltshire group now employs more than 200 people

Location WiltshireFYE Dec 15 CAGR§ 86.85% Latest profits £7.6mBase profits £1.2mLatest sales £17.8mEmployees 125

Elaine Fairfax, 62, founded this pet insurance company in 1998 with her husband Chris, 59, with the aim of raising money to fund animal welfare. The Wiltshire firm has since donated £3m to more than 300 charities. It has sold over 600,000 policies to date and profits rose to £7.6m in 2015, on margins of 43%, among the highest on the league table.



EXTERNAL CAPITAL One in four companies (24) has received equity funding from investors such as venture capital, private equity firms and/or corporations to launch and grow their businesses. Seven have sold minority stakes to external investors. For example, residential property services provider SDL Group (No 58) sold a 25% stake to BGF for £10m, helping to finance three strategic buyouts. Other examples are profiled below.

Titus Sharpe, (right) chief executive of MVF (No 50), led a buyout in 2015, backed by Bridgepoint which acquired a minority stake


25 LGC Analytical services laboratory

American firm KKR acquired LGC from Bridgepoint in 2015 for an undisclosed sum

Location Southwest LondonFYE Mar 16 CAGR§ 90.66% Latest profits £48.8mBase profits £7.0mLatest sales £247.5mEmployees 2,337

Headquartered in London and backed by private equity firm KKR, LGC is a life sciences measurement and analytical testing company serving pharmaceutical, food, environmental and government markets. Profits rose to £48.8m in March last year, following the acquisition of three companies, including Californian genomics firm Biosearch Technologies. Since the year end, chief executive Tim Robinson, 53, has continued his buy-and-build strategy, completing six acquisitions, including a majority stake in US genomics automation business, Douglas Scientific, and BRC Global Standards.

50 MVF Digital marketing agency

Bridgepoint acquired a 40% stake in 2015, financing its first overseas office in Texas

Location North LondonFYE Mar 16 CAGR§ 76.72% Latest profits £7.9mBase profits £1.4mLatest sales £39.0mEmployees 279

This marketing firm was founded in 2009 by five friends in a basement office in London's Borough Market. It now operates in 120 countries and clients such as British Gas and Salesforce use its technology to acquire new customers. In 2015, private equity firm Bridgepoint acquired a 40% stake in the group, providing investment capital that was used to open its first overseas office in Texas. Chief executive Titus Sharpe, 42, oversaw profit growth to £7.9m in 2016.

77 Frank Recruitment Group IT recruitment consultancy

Private equity firm TPG acquired a majority stake in April 2016

Location Newcastle Upon TyneFYE Nov 16 CAGR§ 68.56% Latest profits £15.5m*Base profits £3.2mLatest sales £127.5mEmployees 810

Frank Recruitment is an international niche IT recruitment group, operating in more than 70 countries, placing candidates who specialise primarily in Microsoft Dynamics, Netsuite and Salesforce. In April last year, chief executive James Lloyd-Townshend, 44, led a buyout backed by private equity firm TPG, which acquired a majority stake in the Newcastle based company for an undisclosed sum. Group profits for the year subsequently reached £15.5m. It recently opened offices in Philadelphia and Dallas, and is targeting growth in the cloud technology market.



HOUSEBUILDING AND CONSTRUCTIONA study of crane activity on construction sites in 2016 published in January, suggests a surge in building is under way in big regional cities, with activity returning to levels last seen before the 2008 financial crisis. There are 28 companies on the league table operating in a building-related industry, one fewer than last year’s findings (29). Eight are housebuilders and 14 provide support services/products to this industry, including building products supplier Taylor Maxwell (No 37), concrete product manufacturer Tobermore (No 30), and quarry and concrete products supplier Glendinning (No 53). Other examples are profiled below.

§ three year compound annual growth rate † annualised

Story Homes (No 44) featuring a record sixth time, completed on 565 properties in 2016, up 38% annually

16 Lioncourt Homes Housebuilder

Completed on 190 homes in 2016, precisely double the number sold in the previous year

Location WorcestershireFYE Mar 16 CAGR§ 98.52% Latest profits £9.0mBase profits £1.2mLatest sales £40.5mEmployees 54

When private-equity firm Lioncourt Investments saw an opportunity in the housebuilding market, it turned to industry veteran Colin Cole, 58, to set up Lioncourt Homes in 2006. Now chief executive of the Worcester-based housebuilder, Cole has overseen a period of rapid growth that pushed up profits to £9m last year, driven by an increase in the size and number of the plots it has developed.

20 Strata HomesHousebuilder and developer

Sold 569 homes in 2015 more than double the number sold in 2012

Location DoncasterFYE Dec 15 CAGR§ 95.01% Latest profits £10.0mBase profits £1.3mLatest sales £98.9mEmployees 162

This Doncaster firm was started by Oscar Weaver in 1919 as a construction contractor. Now chaired by his grandson Irving, 68, the company has housing developments across Yorkshire and the Midlands, selling homes for an average of £174,000. It made a profit of £10m on sales of £98.9m in 2015, when it sold 569 homes, more than double the number it sold in 2012. Its growth is partly attributable to the introduction of the Help to Buy scheme in 2013.

44 Story Homes Housebuilder

Expects to complete on 800 homes in 2017, up 42% on last year

Location CarlisleFYE Mar 16 CAGR§ 80.74% Latest profits £22.1m†

Base profits £3.7mLatest sales £121.0m†

Employees 211

Chairman Fred Story, 60, founded this Carlisle housebuilder in 1987, and puts recent growth down to a strong land bank and expansion into Scotland, the northeast and northwest of England. Under the stewardship of chief executive Steve Errington, 47, the group completed on 565 properties in 2016, up 38% annually, helping annualised profits rise to £22.1m. It refinanced £60m of bank debt last year, which will help to underpin the acquisition of development and strategic land in the next few years.



§ three year compound annual growth rate

MANUFACTURING There are 25 manufacturers on the league table, the majority of which make some or all of their products in the UK, including park home manufacturer Omar Group (No 45) and bakery Haywood & Padgett (No 35). Those with international manufacturing operations include household goods manufacturer Minky (No 94), which has a factory in Germany, and carpet manufacturer Brintons (No 67), which has production facilities in Poland, Portugal and India. Other examples are profiled below.Jim Milne, founder of polymer engineer and manufacturer

Balmoral Group (No 14), which makes flotation equipment in Aberdeen for the deepwater oil and gas industry

6 Muntons Malt manufacturer

Produces 200,000 tonnes of malt and malted products a year

Location SuffolkFYE Jan 16 CAGR§ 129.46% Latest profits £9.4mBase profits £0.8mLatest sales £91.5mEmployees 315

Muntons makes and supplies malt-based ingredients for clients including Carlsberg, Kelloggs and Mars. The Yorkshire and Suffolk-based business also has offices in America, and last year started a joint venture in Asia where malted cold drinks are popular. Managing director Alan Ridealgh, 60, saw profits rise to £9.4m in 2016, thanks to its growing overseas presence as well as domestic demand from the thriving craft brewing and Scottish distilling industries.

14 Balmoral Group Polymer engineer and manufacturer

Demand from offshore oilfields in Brazil and West Africa are sustaining profits

Location AberdeenFYE Mar 16 CAGR§ 101.24% Latest profits £32.9mBase profits £4.0mLatest sales £134.4mEmployees 576

Balmoral Group manufactures polymer-based flotation equipment for the deepwater oil and gas industry. It also makes industrial tanks used for water storage, wastewater treatment and biogas processing. Founded in 1980 by Jim Milne, 76, the company is based in Aberdeen and has offices in Houston and Rio de Janeiro. Profit reached £32.9m in 2016, boosted by demand for sub-sea lines from oilfields off Brazil and West Africa despite low oil prices.

63 Talley Group Medical device manufacturer

Opened a new custom-built R&D facility at its Hampshire headquarters last year

Location HampshireFYE Oct 15 CAGR§ 73.47% Latest profits £6.1mBase profits £1.2mLatest sales £23.8mEmployees 210

This firm's medical devices are designed and manufactured in its Hampshire factory and include pressure-relieving mattresses and devices to treat deep vein thrombosis. Founded in 1953 by Henry Talley, the business is now led by his grandsons Chris and John Evans, 54 and 50. Profits hit £6.1m in 2015, boosted by a contract with a US distributor. The company invested £3m last year in its R&D and manufacturing facilities.




TECHNOLOGYThe league table contains 12 technology companies, and the majority (9) operate in IT. Some, such as Claranet (No 93) and IT Lab (No 39) provide IT services to companies; others develop software to improve business processes such as benefit specialist Tusker (No 28) and vehicle tracking developer Microlise (No 62). The list also contains three companies operating in pharmaceutical and biotech industries, including precision valve manufacturer ChargePoint Technology (No 27). Other examples are profiled below.Reward Gateway (No 85), group reward director Debra

Corey and chief executive officer Glenn Elliott

19 Mobica Software engineer and tester

Global customers use its technology in smartphones, cars and devices such as set-top boxes

Location CheshireFYE Dec 15 CAGR§ 95.40% Latest profits £11.2mBase profits £1.5mLatest sales £38.5mEmployees 808

Technology entrepreneurs Nick Stammers, 54, and Jon Clayton, 59, set up Mobica in 2004 to develop mobile phone software. Today, the Cheshire-based company provides software engineering services to sectors such as automotive, semiconductor, finance and internet of things. Its global customers, including Intel and Airbus, use its technology in smartphones, cars and devices such as set-top boxes. Offices in Poland, Silicon Valley and Mexico helped profits more than double to £11.2m in 2015; and private-equity firm Inflexion took a minority stake in the company in September 2015.

62 Microlise Vehicle tracking developer

Its telematics systems enable companies to monitor the efficiency of their fleet

Location NottinghamFYE Jun 16 CAGR§ 73.47% Latest profits £3.2mBase profits £0.6mLatest sales £41.2mEmployees 347

Microlise develops tracking systems that help commercial truck users and manufacturers maximise fleet efficiency. The telematics systems track driving style, location and vehicle health. The Nottingham company works with manufacturers including MAN, DAF and Tata Motors, as well as retailers such as Tesco and Carlsberg across Europe, and generated profits of £3.2m last year. The company is already established in India and Australia, and chief executive Nadeem Raza, 50, is planning further operations in Dubai.

85 Reward Gateway Employee engagement services

Provides its software to more than 1,300 customers in 23 countries

Location Central LondonFYE Jun 16 CAGR§ 64.51% Latest profits £9.7m*Base profits £2.2mLatest sales £225.0mEmployees 334

Reward Gateway creates software to help companies attract, engage and retain employees through benefits, rewards, wellbeing and improved communication. It runs schemes for more than 1,300 customers in 23 countries including American Express, Unilever and Samsung. In 2015, chief executive Glenn Elliott, 44, led a £140m buyout backed by private equity firm Great Hill Partners. Since then it has made six acquisitions, including competitor UK firm Logbuy. These investments, as well as growth in America and Australia, helped profits rise to £9.7m in 2016.



WELL-KNOWN BRANDS Household names that feature on the league table include Churchill Retirement Living (No 21) for a fourth time; and Bill’s Restaurants (No 36), Gtech (No 11) and Paperchase Products (No 55) for a second time.

The league table also features new entrants such as Brintons (No 67), Di Maggio's (No 29), Minky (No 94), Paymentsense (No 1), PureGym (No 60), Radnor Hills (No 49), and Watchfinder (No 48). Other examples are profiled below.As well as water, Radnor Hills (No 49) produces sparkling

premium presses and fruit juices, with brands including Fruella, Aqua Splash, and Heartsease Farm

§ three year compound annual growth rate † annualised

49 Radnor Hills Bottled drinks manufacturer

Produced 230m units of bottled drink last year, working at 58% of its production capacity

Location Radnor, PowysFYE May 16 CAGR§ 76.73% Latest profits £6.5mBase profits £1.2mLatest sales £33.8mEmployees 126

Soon after starting work on his family farm in 1988, founder and managing director William Watkins, 51, decided to sell the water beneath his feet, rather than sheep and cattle. As well as branded and own label bottled water, the Powys group also produces flavoured spring water, sparkling premium presses and fruit juices, with brands including Aqua Splash, Fruella and Heartsease Farm. Profits rose to £6.5m in 2016, helped by investment in production, including a new £6m bottling line.

60 PureGym Gym operator

Olympic gold medal-winning cyclist Sir Chris Hoy is an adviser to the business

Location LeedsFYE Dec 15 CAGR§ 73.87% Latest profits £13.5mBase profits £2.6mLatest sales £125.2mEmployees 960

Most of PureGym’s 174 sites are open 24/7 and all offer low-cost membership with no fixed-term contracts. Peter Roberts, 71, founded the business in 2008 and sold a majority stake to the American private-equity firm CCMP in 2013. In 2015, profits rose to £13.5m after the Leeds company bought 43 LA Fitness gyms in a £74m deal. The business is led by Humphrey Cobbold, 52. After our research closed, the company reported profits increased to £15.4m in 2016.

67 Brintons Carpet manufacturer

As well as Kidderminster and Telford, the group makes its carpets in Portugal, Poland and India

Location KidderminsterFYE Oct 16 CAGR§ 72.19% Latest profits £8.8m†

Base profits £1.7mLatest sales £87.7m†

Employees 1,796

Founded more than 230 years ago, Brintons was one of the first to establish Kidderminster as an industrial centre for carpet manufacturing. Despite its heritage, the group ran into financial difficulties in 2011, and was acquired by US private equity firm Carlyle for £40m. Since then, it has returned to strength in its key residential markets of Britain, Australia and Poland, and won commercial projects such as the P&O Britannia, Britain's biggest ship. In 2015, chief executive Duccio Baldi, 53, led the acquisition of Polish carpet manufacturer Agnella, helping annualised profits rise to £8.8m in the following year.



2017 PROFIT TRACK 100 LEAGUE TABLE

Profits = operating profit * supplied by company † annualised figure

1 Paymentsense Payment processing services West London Mar 16 203.41% 14,075 44,554 203 Serves 57,000 small businesses and processed

£5.5bn worth of card payments last year

2 Avon Group Seal manufacturer Bristol Mar 16 148.51% 11,145 48,295 504 Exports its seals and gaskets to 40

countries

3 Heatherwick Studio Architect & designer Central London Mar 16 141.16% 10,435 27,843 180 Is designing Google's HQ in King’s Cross, north

London, and in Mountain View, California

4 Howarth Timber Group Timber products supplier Leeds Mar 16 133.38% 9,292 169,232 914 This family-owned timber supplier dates

back to 1840

5 Your World Recruitment Group Healthcare recruitment consultancy Central London Dec 15 132.21% 6,895 98,232 174 Places more than 2,300 healthcare staff

a day

6 Muntons Malt manufacturer Suffolk Jan 16 129.46% 9,424 91,479 315 Produces 200,000 tons of malt and malted

products a year

7 Bruntingthorpe Proving Ground Aerodrome & vehicle test track Lutterworth Jun 15 114.49% 5,200 18,772 62 Until 1962 it was used as a heavy bomber

base, codenamed ‘Big Thunder’

8 Plan B Healthcare Recruitment consultancy Central London Sep 15 113.60% 4,938 24,392 43 Founder Kevin Coyle owns five recruitment

firms

9 HH Global Marketing services supplier South London Mar 16 109.35% 5,845 202,181 656 Opened a Hong Kong office last November

to support its Asia-Pacific business

10 67 Sahara Presentation Systems Audio-visual products supplier Kent Dec 15 107.18% 4,637 38,265 70 Sells audiovisual products to the education

sector in the UK and internationally

11 2 Gtech Appliance manufacturer Worcester Nov 16 105.83% *9,164 *91,236 138 Has sold more than 22m domestic

appliances in 19 countries

12 Britannia Hotels Hotelier Altrincham Mar 16 105.30% 34,180 84,105 2,011 Has some hotels in historic buildings such as

Warwickshire's grade II-listed Bosworth Hall

13 Gordons Chemists Chemist

Banbridge, Co Down Apr 16 103.71% 5,088 80,570 655 Says it is the largest independent

pharmacy chain in Northern Ireland

14 7 Balmoral Group Polymer engineer & manufacturer Aberdeen Mar 16 101.24% 32,931 134,450 576 Demand from offshore oilfields in Brazil

and West Africa are sustaining profits

15 Lawrence David Trailer manufacturer Peterborough May 16 100.05% 4,901 97,273 253 In 2015 it won a three-year contract to make

all of Sainsbury’s home delivery vehicles

16 Lioncourt Homes Housebuilder Worcester Mar 16 98.52% 9,009 40,524 54 Last year it completed the sale of 190

homes, double the amount sold in 2015

17 L & J Holdings Civil engineer Walsall Nov 15 98.32% 15,355 58,929 59 Provides its services to national

construction firms and housebuilders

18 Wilkinson Vintners Wine merchant

Northwest London Jun 16 97.56% *3,892 *22,972 9 Has a case of 1988 Romanée-Conti

Burgundy in stock priced at £180,000

19 Mobica Software engineer & tester Cheshire Dec 15 95.40% 11,169 38,532 808 Private-equity firm Inflexion acquired a

minority stake in September 2015

20 Strata Homes Housebuilder & developer Doncaster Dec 15 95.01% 9,975 98,900 162 The government’s Help to Buy scheme has

contributed to its growth

21 12 Churchill Retirement Living Retirement housebuilder Hampshire Jun 16 94.63% *62,781 *186,956 492 Dame Esther Rantzen opened the firm's

100th development last December

22 Evolution Funding Motor finance intermediary Chesterfield Dec 16 94.18% *6,878 *60,576 276 Last year it financed more than 31,000 vehicle

loans and increased its rental fleet to 1,800

23 Morrisroe Group Groundworks & construction

Borehamwood, Herts Oct 15 93.10% 9,891 114,550 162 Landmark projects include One Tower Bridge

in London and the Library of Birmingham

24 84 Symphony Furniture supplier Barnsley Dec 15 90.76% 12,474 182,713 1,423 Owns premium brand Charles Yorke,

which offers bespoke traditional kitchens

25 LGC Analytical services laboratory

Southwest London Mar 16 90.66% 48,772 247,536 2,337 Is the designated UK national institute for

chemical and biological measurement

Rank2017

Rank2016

Latest profits

£000

3yr average annual

profit growthFYEHQ locationActivity

CompanyLatest

sales£000 Staff Comment




26 Premier Group Sheet metal engineer Coventry Mar 16 90.28% 3,613 18,001 232 Manufactured the iconic torch carried at

the London 2012 torch relay

27 ChargePoint Technology Precision valve manufacturer Liverpool Dec 16 89.26% *3,367 *11,415 60 Chief executive Chris Eccles led a buyout

backed by LDC in January

28 Tusker Car benefit specialists Watford Dec 16 89.22% *9,430 *140,875 170 Provides over 320 car benefit schemes for

more than 850,000 employees

29 Di Maggio's Restaurant group Glasgow May 16 89.03% 6,295 33,798 784 Plans to open two new Café Andaluz

restaurants later this year

30 Tobermore Concrete Products Concrete products manufacturer

County Londonderry Apr 16 87.98% 6,069 32,364 198 Founded some 75 years ago as a sand and

gravel business

31 Spark Energy Energy supplier Selkirk Jun 16 87.88% 5,786 126,320 308 Chief executive Chris Gauld led a buyout

backed by Limerston Capital last August

32 Clarkson Evans Electrical contractor Gloucester Sep 16 87.46% *3,739 *47,551 719 In 2016 it wired 10% of all new homes built

in England and Wales

33 79 Animal Friends Pet Insurance Pet insurance provider Wiltshire Dec 15 86.85% 7,582 17,773 125 Has donated over £3m to more than 300

animal welfare charities

34 Green Frog Power Short-term reserve electricity provider Coleshill Mar 16 86.57% 12,546 16,825 5 Is able to provide reserve power to the

National Grid within 30 seconds

35 Haywood & Padgett Bakery Barnsley Oct 15 86.19% 4,556 23,241 138 Produces 4.5m scones every week,

supplying most large UK supermarkets

36 23 Bill's Restaurants Restaurant operator Central London Aug 16 86.04% 8,380 110,547 2,909 Last financial year it served 5.8m eggs and

468,000 avocados to more than 7.5m customers

37 Taylor Maxwell Building products supplier Bristol Mar 16 85.94% 5,865 173,600 175 Installed 4,000 sq m of oak flooring for Oxford's

award-winning Blavatnik school of government

38 Greenray Gas turbine servicer Lincoln Dec 15 85.86% 3,503 25,583 96 Overseas markets include India, Abu Dhabi

and Iraq

39 IT Lab IT services provider Central London Mar 16 84.94% *4,737 *31,118 331 Chief executive Peter Sweetbaum led a

buyout backed by ECI Partners last year

40 BladeRoom Modular data centre designer Cheltenham Mar 16 83.48% †8,567 †40,631 62 Has built more than 100 healthcare

facilities in the past six years

41 Carey Group Building contractor Wembley Mar 16 82.06% 18,203 430,707 1,173 Its recovery plant in Wembley can process

1m tons of waste a year

42 Readie Construction Construction contractor Romford, Essex Mar 16 81.77% 3,535 92,231 73 Its website allows users to view live

webcams of its current projects

43 22 Fox International Group Fishing tackle supplier

Brentwood, Essex Dec 15 81.13% 5,200 29,147 103 Mayfair Equity Partners acquired a majority

stake in 2015 valuing the group at £50m

44 62 Story Homes Housebuilder Carlisle Mar 16 80.74% †22,093 †121,046 211 Expects to complete 800 homes in 2017,

up 42% on last year

45 Omar Group Park home manufacturer Suffolk Apr 16 79.27% †3,912 †30,838 333 Opened a £1.1m extension to its Suffolk

factory last year, creating 80 jobs

46 The Right Fuelcard Company Fuel card provider Leeds Jun 16 79.05% 3,327 136,894 62 Acquired Total’s fuelcard division in partnership

with fuel forecourt operator Rontec in 2012

47 Silentnight Group Bed manufacturer Lancashire Jan 16 78.68% 7,752 137,499 1,018 Makes half a million beds each year

through brands such as Sealy and Layezee

48 Watchfinder Pre-owned watch retailer Kent Mar 16 78.62% 3,340 60,777 108 Sells a watch every 30 minutes, worth an

average of £5,000 each

49 Radnor Hills Bottled drinks manufacturer Powys May 16 76.73% 6,473 33,824 126 Produced 230m units of bottled drink last

year, working at 58% of its production capacity

50 MVF Digital marketing agency North London Mar 16 76.72% 7,876 39,009 279 Opened its first overseas office in 2015,

in Texas


Rank2017

Rank2016

Latest profits

£000

3yr average annual


CompanyLatest





51 Vets Now Out-of-hours vet surgeries Dunfermline Mar 16 76.16% 4,130 36,759 1,103 Says it treats about 100,000 small animals

every year

52 MAATS Tech Marine engineering consultancy Winchester Sep 16 76.11% *8,395 *33,288 40 Recently completed delivery of 11

converted ships for customers in Brazil

53 33 Glendinning Quarry & concrete products

Ashburton, Devon Apr 16 75.90% 6,676 33,298 224 Says it is Devon's largest family-owned

quarrying, concrete and road contracting firm

54 Vital Energi Energy services provider Blackburn Jun 16 75.74% 6,300 106,766 330 Installed the underground heating network

for the BBC's Media City in Manchester

55 Paperchase Products Stationery & card retailer Central London Jan 16 75.65% 4,929 119,185 2,006 Plans to open its first stores in America

later this year

56 Brickability Brick supplier Bridgend Mar 16 75.60% 4,651 72,640 101 Has created a brick calculator to work out the

exact number of bricks required for a project

57 Bennett Homes Housebuilder Suffolk Dec 15 75.26% 3,423 17,421 44 Currently has eight new housing

developments in East Anglia

58 SDL Group Residential property services Nottingham Mar 16 74.88% 3,529 25,422 498 Says its acquisition of Graham Penny makes it

Britain's fourth biggest property auction house

59 AB2000 Plant hire business Glasgow Jan 16 74.81% 4,080 25,581 233 Invested £10m last year in new plant

machinery and equipment

60 PureGym Gym operator Leeds Dec 15 73.87% 13,536 125,201 960 Olympic champion cyclist Sir Chris Hoy is

an adviser to the business

61 Pennyfarthing Housebuilder Hampshire Jan 16 73.60% 5,661 35,823 65 Builds coastal homes in Dorset and

Hampshire

62 Microlise Vehicle tracking developer Nottingham Jun 16 73.47% 3,184 41,224 347 Is setting up operations in Dubai to add to

offices in India and Australia

63 Talley Group Medical device manufacturer Hampshire Oct 15 73.47% 6,092 23,809 210 Opened a custom-built research and development

facility at its Hampshire base last year

64 PN Daly Utilities contractor Rochdale Sep 15 73.25% 3,930 31,725 377 Provided power infrastructure for more than

150 tram stops on the Manchester Metrolink

65 81 Premier Decorations Festive decorations wholesaler West London Jun 16 73.12% 7,307 38,490 80 Says it is Britain's largest purveyor of

Christmas decorations

66 Net World Sports Online sports goods retailer Wrexham Sep 16 72.60% *3,048 *11,867 62 Manufactures its own PVC football goals

67 Brintons Carpet manufacturer Kidderminster Oct 16 72.19% †8,837 †87,666 1,796 Makes its carpets in Portugal, Poland and India

– as well as in Kidderminster and Telford

68 Durbin Pharmaceuticals supplier

Northwest London Dec 16 72.09% *5,919 *77,012 146 Supplies developing communities with low

cost, inflatable solar lights

69 Collard Group Demolition, haulage & skip hire

Eversley, Hampshire Dec 15 71.49% 4,744 26,356 161 The founder Rob Collard is a former British

Touring Car race winner

70 Finnebrogue Artisan food producer

Downpatrick, Co Down Aug 15 71.42% 4,644 44,910 245 Says it is becoming Marks & Spencer’s sole

supplier of sausages

71 17 AlphaSights Business information services Central London Dec 15 71.17% 14,408 48,617 269 Thirty-seven languages are spoken across

its eight international offices

72 Delta Group Marketing services provider East London Dec 15 69.99% 5,690 66,873 595 Creates 100m in-store display products

every year

73 Stowell Concrete Concrete products manufacturer Yatton, Bristol Jun 16 69.85% 4,307 25,730 72 Operates three concrete factories in Somerset

and is planning a fourth in the southwest

74 MPM Products Pet food producer Macclesfield Dec 16 69.49% *5,054 *47,382 56 Exports its premium pet food to 46

countries

75 Hollingsworth Group Civil engineer Flintshire Apr 16 68.93% 4,816 19,178 56 Completed construction of one of the largest

robotic jig foundations in the UK aerospace industry


Rank2017

Rank2016

Latest profits

£000

3yr average annual


CompanyLatest






76 Numeric Futures Telecoms reseller Birmingham Mar 16 68.67% 4,037 21,685 8 Works with Vodafone, Colt Telecom, Virgin

Media and BT

77 Frank Recruitment Group IT recruitment consultancy

Newcastle Upon Tyne Nov 16 68.56% *15,451 *127,457 810 Private equity firm TPG acquired a majority

stake in April last year

78 J Browne Group Civil engineer

Enfield, Middlesex Mar 16 68.23% 3,727 35,649 153 Has extended its contract with Thames

Water until 2020

79 Principle Brand implementation agency Huddersfield Dec 15 67.85% 5,511 99,231 396 Opened its 15th office last year, in Mumbai

80 Notemachine Cash machine operator Powys Jun 16 67.76% 22,191 142,723 987 Operates 9,000 cash dispensers, including

550 in German supermarkets and shops

81 Grant Westfield Washroom manufacturer Edinburgh Dec 15 67.56% 5,534 36,014 207 Fitted out the 'super-VIP' bathrooms at

BBC Television Centre

82 Enra Group Specialist loan provider Borehamwood Dec 16 66.38% *18,975 *39,023 80 Its West One Loans subsidiary lent almost

£400m in 2015

83 Castle View Leisure services manager Stirling Mar 16 66.20% 9,868 137,088 4,746 Runs more than 150 leisure facilities for 50

local authorities

84 APS Group Tomato & salad grower Cheshire Dec 15 65.66% 3,307 78,989 474 Harvests more than 20,000 tons of

tomatoes every year

85 9 Reward Gateway Employee engagement services Central London Jun 16 64.51% *9,693 *224,971 334 Launching a £4m fund, backing initiatives to

help people get into better, safer and fairer jobs

86 46 Fairview Housebuilder North London Dec 15 64.39% 64,755 178,193 210 Develops brownfield sites in London and

the southeast of England

87 Harvey Water Softeners Water softener manufacturer

Old Woking, Surrey Dec 15 63.35% 5,835 23,726 95 Sells water softeners that can reduce

heating bills and help appliances last longer

88 J & S Accessories Motorcycle accessories retailer

Oakmere, Cheshire Dec 15 63.08% 3,419 23,600 189 The company sold 45,092 motorcycle

helmets in 2016

89 MJM Interior Build Specialist joiner Newry, Down Dec 15 62.90% 4,972 58,894 185 Completed a refit of the world’s largest

cruise ship, Oasis of the Seas, in 2014

90 ActivTrades Financial markets broker Central London Dec 15 61.44% 11,558 31,409 179 Offers expert analysis on the financial

markets for TV channels such as CNBC

91 11 Mobile Phones Direct Online mobile phone retailer Newbury Mar 16 61.20% 6,368 79,253 96 Sells the latest smartphones from

manufacturers such as Apple and Samsung

92 Hill Housebuilder

Waltham Abbey, Essex Dec 15 60.89% 30,759 303,840 335 In 2015 it built more than 1,500 new homes

in London and the southeast of England

93 56 Claranet IT services provider Central London Jun 16 60.67% 17,200 152,500 980 Expanded into Italy with a Milan-based

public cloud operation in February

94 Minky Household goods manufacturer Rochdale Oct 15 59.96% 4,452 39,125 337 All of its ironing boards and covers are

manufactured in Lancashire

95 The Westmorland Family Motorway services operator

Penrith, Cumbria Jun 16 59.62% 6,776 85,400 878 Its award-winning Gloucester services on the

M5 is supplied by 200 local food producers

96 Endava IT services provider Central London Jun 16 59.42% 19,937 115,432 2,533 Last year it opened a development centre

in Bogota, Colombia

97 Millbrook Industries Furniture manufacturer Southampton Jun 16 59.22% 6,939 108,662 743 Manufactured the doors for No 10, 11 and

12 Downing Street

98 Morris Leslie Plant hire business Perth Apr 16 57.35% 7,729 40,063 207 The average age of its equipment is 22

months

99 Whitehouse Leisure Soft toy distributor Basildon, Essex Dec 15 57.32% *†10,100 *†58,140 40 Holds the leisure licence to distribute Disney

soft toys across the UK, Middle East and Africa

100 Havwoods Hardwood flooring specialist Lancashire Dec 15 57.25% 3,930 33,915 89 Supplies more than 1,000 variants of its

wooden flooring

Rank2017

Rank2016

Latest profits

£000

3yr average annual


CompanyLatest




ONES TO RECOGNISEIn addition to the 100 companies featured in the Profit Track 100, Fast Track also researches a cross section of companies that for one reason or another do not qualify for the main table, but deserve to be acknowledged.

Ten finalists are chosen to feature in ‘Ones to Recognise’. Companies are selected partly on historical profit growth, but also on the strength of their management team, challenges overcome and their potential for future growth.

This year's finalists are detailed below.

BEST OF THE RESTOnes to Recognise showcases a cross section of companies that do not qualify for this year’s Profit Track 100, but have either had, or predict, good profit growth.

Company HQ location Year end

Profits £000

Sales £000

Staff Founded Short profile

COOK Frozen food manufacturer Kent Mar 16 2,540 45,056 746 1997

A committed “B Corp”, it employs ex-prisoners and homeless people to help it produce 250,000 frozen meals a week and forecasts ebitda profits of £4.6m this year

Doves Farm Foods Specialist flour miller Berkshire Jun 16 *2,867 *17,278 71 1978

Family miller has built a premium brand following for its organic flours, sold by Waitrose, Tesco and Ocado, as it profits from the popularity of baking

Gripple Engineering device manufacturer Sheffield Dec 15 4,632 48,646 443 1989

Employee-owned manufacturer of 2,000 products, sold in 80 countries and protected by 40 patents, which has spun out two other successful firms

Guestline Hospitality software developer Shrewsbury Nov 15 3,348 11,221 121 1991

Product innovation and high customer retention have driven 53% pa profit growth, to £3.3m in 2015, with a 30% margin

Hague Print Media Print solutions provider West Yorkshire Dec 15 3,588 16,168 47 1980

Handling specialist print jobs in more than 50 countries, it doubled profits in 2015 to £3.6m, before making four acquisitions in the last 15 months

Molecular Products Group Air purification technology Essex Mar 16 2,035 22,672 129 1973

America accounts for 50% of sales, and following its sale in December to US private equity firm Arlington, it is now targeting rapid international growth

Quiz Clothing Fashion retailer Glasgow Mar 16 *5,683 *87,375 1,239 1994

Has grown profits by 32% a year despite investing in a new £3m distribution centre in Glasgow, and plans to expand its network of more than 300 outlets in 20 countries

Racing Post Racing publisher Central London Dec 15 12,795 56,114 275 1986

Famous for its daily horse racing newspaper, digital platforms now account for 33% of sales. Backed by private equity firm Exponent, it expects ebitda margins of 37% in 2017

Sydenhams Builder's merchant Bournemouth Mar 16 5,930 60,929 402 1874

Brothers James and Charles Sherborne have acquired 12 companies in the southwest of England and the Channel Islands, and grown margins to 10%

Team17 Computer games developer West Yorkshire Dec 16 *5,200 *13,400 100 1990

Founder Debbie Bestwick expects profits to more than double this year to £12.5m, helped by a £16.5m investment from private equity firm LDC

Profits = operating profit * supplied by company



METHODOLOGYThe Sunday Times Profit Track 100 league table ranks Britain’s 100 private companies with the fastest-growing profits, measured over their latest three years of available accounts.

Qualification criteriaCompanies were ranked on their average compound annual growth rate (CAGR) in operating profits over three years. The cut off for inclusion was a financial year end on 30 June 2015. Of the 100 companies in the league table, 33 had financial years ending in 2015, 67 had financial years ending in 2016.

Qualification criteria also included:

• UK registered, unquoted and independent

• Base year (2012-2013) operating profits of more than £500,000

• Latest year (2015-2016) operating profits of more than £3m

• Operating profits must increase in the latest year

• Profits accrued from joint ventures, exceptional costs or income, as well as impairment, were excluded

Research approachThe main research was conducted by Fast Track between October 2016 and March 2017.

Companies were selected from a database of 1.8m private companies in the UK followed by extensive desk-based research.

Most companies on the league table were interviewed over the telephone and/or visited by the Fast Track research team.

DisclaimersThese companies are not endorsed, guaranteed or recommended by Fast Track or the sponsors of Profit Track 100. They are not necessarily the best-run companies, and are ranked on historical profit growth to the latest available financial year end.

Some exceptions were made to the qualification criteria set out above. The compiler’s decision is final and no correspondence will be entered into.



BDO is the title sponsor of Profit Track 100 for a fourth year. BDO is an accountancy and business advisory firm who provide integrated advice and solutions to organisations across a number of sectors throughout the UK. Our clients are Britain’s economic engine – ambitious, entrepreneurially-spirited and high growth businesses that fuel the economy. We pride ourselves on our collaborative approach and are delighted that for the third year running, have the highest proportion of clients who would recommend BDO as advisers among its peer group*.

BDO LLPBDO LLP operates in 18 offices across the UK, employing 3,500 people offering tax, audit and assurance, and a range of advisory services. BDO LLP has revenues of £405m and is the UK member firm of the BDO International network. BDO’s global networkThe BDO global network provides business advisory services in 158 countries, with 68,000 people working out of 1,400 offices worldwide. It has revenues of $7.6bn.

www.bdo.co.uk

* Independent research undertaken by Meridian West (Mid-Market Monitor 2013-2016)

Stuart LislePartner, Corporate Tax Services

ABOUT THE SPONSORSFast Track would particularly like to thank the title sponsor of Profit Track 100, BDO, for sponsoring the league table for the fourth year; and our other main sponsor, UBS Wealth Management, which has sponsored the table for the past fifteen years.

The sponsors do not endorse, guarantee or recommend investment in any of the companies.

Sponsors



Iain DeyBusiness editor

Media partner

© 2013 Fast Track 100 www.fasttrack.co.uk

The Sunday Times has been Fast Track's media partner for all 20 years. The Sunday Times is Britain’s No 1 newspaper for business, and the leading broadsheet newspaper attracting over three million readers every week. More than half (54%) of the business elite read The Sunday Times, a greater market share than any other publication, according to the latest Ipsos survey.

www.thesundaytimes.co.uk

UBS provides a complete wealth management service in the UK. We have a long history of working with UK entrepreneurs, planning their business, family and investment needs as they approach a liquidity event.

Our advisors will help you learn how to protect and grow your hard-earned wealth, drawing on the strength of our Global Chief Investment Office. Whether you want to leave money in trust for your children, sort out your pension arrangements or, increasingly, become a philanthropist, we can help you achieve your goals.

www.ubs.com/wealthmanagement-uk

Giles NicholasManaging Director

Sponsors



ABOUT FAST TRACKCompiler & publisher

Hamish Stevenson owns and runs Fast Track, which he founded in 1997 after securing cornerstone sponsorship from Richard Branson. He works closely with leading entrepreneurs, sponsors and media partners to try to ensure their expectations are exceeded, and that they remain engaged with the alumni network.

He is an associate fellow at Green Templeton College, Oxford University, where he completed his masters and doctorate in management studies and subsequently set-up and held the Virgin research fellowship in entrepreneurship.

The authorsRichard Tyler leads Fast Track’s research and editorial, working closely with sponsors and companies within our network.

He was the enterprise editor of The Daily and Sunday Telegraph for nine years, covering private companies and government policy towards business. He trained in journalism at Euromoney, part of The Daily Mail & General Trust, after completing his degree at Manchester University.

Mike Harding is responsible for managing the Profit Track 100 research. He trained as a chartered accountant with Grant Thornton and has an audit and corporate finance background. He has a degree in mathematics from The University of Birmingham.

Support was also provided by Fast Track researchers Adam Boyle, Michael Cook, Laura Kebble and Chris Marshall, and freelancers Ashley Cavers, Claire Harrington, Suzie Pilkington, Luke Purser and Francesca Woodhouse.



CONTACT DETAILS

Fast Track Angel Court 81 St Clements Street Oxford OX4 1AW

Tel: 01865 297 100 Fax: 01865 297 001

Email: [email protected] Web: www.fasttrack.co.uk twitter: @ST_FastTrack

Fast TrackProfit Track 100 is compiled by Fast Track, the UK's leading face-to-face networking events and research company, which ranks top-performing private companies and entrepreneurs.

Fast Track has compiled league tables on private companies in partnership with The Sunday Times for the last 20 years. It publishes six other annual league table awards programmes:

SME Export Track 100 ranks Britain's private SMEs with the fastest-growing international sales (total sales less than £25m)

Tech Track 100 ranks Britain's private TMT companies with the fastest-growing sales

Fast Track 100 ranks Britain’s private companies with the fastest-growing sales (excluding tech companies)

International Track 200 ranks Britain's mid-market private companies with the fastest-growing international sales (total sales over £25m)

Top Track 250 ranks Britain’s leading mid-market private growth companies with the biggest sales (next tier down from Top Track 100: £115m to £630m with a minimum 5% growth in sales or profit)

Top Track 100 ranks Britain’s private companies with the biggest sales (£630m to £20bn)

Fast Track is based in Oxford with 24 staff, and a network of freelance researchers.

research report 2017 - fast track · profit track 100 research report 2017 1 sponsored by ......

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