UK mid-sized businesses have fallen off the top spot for revenue growth among the leading five EU economies, according to research from accounting firm BDO.
Although the UK’s mid-sized businesses recorded the region’s highest profits, their revenue growth fell to fourth place behind Italy, France and Spain over the last 12 months.
The latest figures from BDO show that UK mid-sized businesses increased turnover by seven per cent to £1.3 trillion; lower than Italy (which grew turnover by 21 per cent), France (15 per cent) and Spain (14 per cent).
BDO said Brexit uncertainties and a weak domestic outlook were having the greatest impact on the sector: the latest data from the ONS showed that the country’s GDP grew by just 0.1 per cent during the first three months of the year.
Still, British mid-sized businesses – which include firms with a turnover of between £10m-300m, private equity-backed businesses and AIM-listed companies – are the second largest by turnover size of the five economies, according to BDO.
British mid-sized businesses also had the highest profits of the five countries at £111bn.
German mid-sized businesses were the most troubled, according to the research, with revenues shrinking, although their turnover remains the largest with revenues of £1.4 trillion.
Paul Eagland, managing partner at BDO, said: “The UK economy has suffered its weakest period of GDP growth in five years and it is clear that businesses are feeling the effects of ongoing Brexit uncertainty.
“But we should not take a short-termist view on the performance of the UK’s mid-sized business growth, which is still surpassing that of small and large domestic businesses, and has outpaced the five leading EU economies over a five-year period.”
According to BDO analysis, the UK will continues to outperform other EU countries in the next five years , with mid-market British businesses increasing revenues by 33 per cent, compared to France (31 per cent), Germany (30 per cent), Italy (26 per cent) and Spain (22 per cent).
Eagland added: “What these latest findings tell us is that, more than ever, the government cannot lose sight of the needs of ambitious mid-market UK firms while EU negotiations take place.
“These mid-sized businesses are the engine room of the British economy and must be given more support as we enter a new chapter of UK plc post-Brexit.”
Source: City A.M.