Northamptonshire’s leading privately-owned businesses pushed up salaries by 10% during the cost-of-living crisis, according to new data reflecting the inflationary pressures the region’s employers have been facing.
The Northamptonshire Limited report, produced by leading business and financial adviser Grant Thornton UK LLP, in collaboration with the full-service commercial law firm Howes Percival LLP and All Things Business, analyses the region’s top 100 private companies. The research reveals an average salary of £38.2K for the 34,705 people working in the leading private companies across the county, with remuneration up by 10% from £34.7K when inflationary pressures were peaking.
The study looks at the most recently available published accounts of the Top 100 firms, many of which cover the period January to December 2023. The annual rate of so-called ‘core inflation’, which excludes the volatile energy and food components of the Consumer Prices Index, peaked at 7.1% in May 2023, its highest rate since 1992. Services inflation also hit a 31-year high of 7.4% in spring/ summer 2023.
Northamptonshire Limited also shows the resilience and adaptability being demonstrated by private businesses during the period under review. They improved turnover by 16% despite the economic uncertainties and evolving market dynamics. The turnover range spans £19.3m to £1.5bn turnover and collectively amounts to £10bn of sales.
The pressure on profitability in the marketplace, however, was marked by a 12% fall in EBITDA (earnings before interest, taxes, depreciation and amortisation) – collectively EBITDA dropped to £525.6m.
The Top 100 is led by Brackley-based Avara Foods, one of the UK’s largest food businesses, supplying chicken and turkey to the nation’s supermarkets and restaurants. The top three is completed by the multi-disciplinary main contractor Winvic, headquartered in Northampton, and the flour producers Whitworths, which has a network of mills in central England and a base in Wellingborough.
Key sectors that make up the Top 100 league table include Consumer Products (35 companies/£5.56bn turnover); Real Estate & Construction (16/£1.86bn); Industrial Products (20/£1.13bn); and Services (16/£874.83m).
There is a good spread across the county with Corby, Kettering, Wellingborough and Northampton all contributing more than 10 companies to the list.
Northamptonshire Limited also identifies the 50 fastest growing firms, businesses with a plus-£10m turnover. They are led by Sloane Helicopters, which has a distinguished reputation for providing helicopter support services from its base at Northampton, and the industrial products group CSG Longboat Ltd.
The 25 largest subsidiaries of internationally owned companies by turnover in the county are also featured. The biggest players include global logistics provider XPO and the cosmetics group Avon, which both have bases in Northampton.
During the period analysed, Grant Thornton itself has advised on deals bringing international investment into the region.
Mike Tillson, a Corporate Finance Partner at Grant Thornton UK LLP in the Central & East of England, said:
“There’s real dynamism in Northamptonshire and the demand for services has covered the whole myriad of compliance, tax, M&A and strategic advice issues in the past 12 months. We pride ourselves on our hands-on and senior- led engagement with business leaders. In many cases we have been assisting businesses with cross-border operations/ambitions. We’re excited about what the next 12 months will bring.”
The team at Howes Percival also reflected on a busy 2024. Matthew Thompson, a Corporate Partner at the law firm, said:
“Northamptonshire’s strategic location in the centre of England, with its excellent connectivity, makes it an attractive destination for a very broad range of businesses.
“We are extremely proud to work with and represent a good proportion of businesses in the Top 100, providing them with a broad array of legal advice and support. We expect the Top 100 businesses in Northamptonshire to continue to demonstrate dynamism and resilience into 2025, particularly bearing in mind the Employer National Insurance increases and a raft of new employment laws on the horizon for business leaders to navigate their way through.
“However, the report’s findings should provide us with confidence that the region’s businesses have faced similar challenges before and will no doubt continue to prosper over the next 12 months.”
You can read the full report here.
Contact Grant Thornton on www.grantthornton.co.uk or Howes Percival on www.howespercival.com
