North West PLCs 'well placed' to weather uncertainty after values rise £1.7bn

Listed firms in the North West are “well placed” to weather the uncertainty of Brexit Britain after adding nearly £1.7bn to their total market capitalisations in 2016.

According to the latest North West Share Index from business advisory firm Deloitte, over the course of the last 12 months the value of listed companies in the region rose from £37.5bn to £39.2bn, an increase of 5%.

AIM-listed businesses in the North West were found to have performed especially strongly, adding close to £2bn to the total.

In particular, Manchester-based boohoo.com enjoyed a buoyant 12 months.

The online fashion retailer saw its market capitalisation rise 264%, from £415m to £1.5bn, with its acquisition of PrettyLittleThing contributing to the growth.

Stobart Group, the support services business, likewise achieved growth, adding nearly £230m to its total market capitalisation.

The firm’s share price reached a 10-year high in August, at 178p per share.

In contrast, the biggest listed businesses in the North West – the 15 ranked among the FTSE 350 – struggled comparatively last year with values dipping by £144m to £28bn.

One large listed company to buck the trend was veterinary pharma business Dechra Pharmaceuticals, which added £278m to its market capitalisation, up 29%.

Deloitte’s head of plc activity in the North West, partner Chris Robertson, said: “The economic uncertainty seen throughout 2016 has presented a considerable challenge to listed businesses across the country, with investor confidence shaken by a number of global events.

“However, North West businesses have shown that there remains the potential for growth if you apply a clear business strategy, with the most successful companies this year looking to supplement organic growth with acquisitions.”

He added: “This economic uncertainty seems set to continue into the first half of 2017, so the region’s businesses are now well-placed to handle this, and will be able to take advantage of growth opportunities once the market is more favourable.”

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