Fastest 50
Our survey of the region's fastest growing companies has been extended, with separate sections for east and west.
Our annual survey of the region's fastest-growing companies has again unearthed a fascinating mix of unheralded success stories. And this year we've doubled the number of companies profiled so that you can hear even more of them. Profiles by Erikka Askeland and Lisa Miles. Research by Rob Mayfield
What strikes you most after only a casual glance at some of the profiles overleaf of our 50 fastest-growing companies in the East and West Midlands is that their success owes little to rocket science.
Instead it almost always owes more to pure business sense - whether it be exploiting a gap in the market, continuing to look at new products and services, keeping your eye on your core business and those of competitors, or looking after your people.
Of these, spotting gaps in the market is perhaps the most relevant to a fast growing company. When as part of our research we asked the bosses of our top 100 companies for the reason for their growth, spotting and exploiting a niche market came back as the biggest factor.
For examples of the latter there is a feast of riches to choose from on the following pages. How about Catering Alliance which like many has picked up on the growing outsourcing trend, or Resource Development International (RDI) which has taken advantage of the increasing preference of corporates to devote ever more money to learning and support services. Staying in the education arena, how about Protocol Teachers which has grown on the back of the lucrative teacher supply industry (and crisis in our schools).
This year we have broken down our top 50 for both the East and West Midlands for the first time. In each case our table is based on accounts submitted to Companies House over the past five years.
Splitting the survey has not only given us the opportunity to profile even more success stories in the region, but also offers a fascinating glimpse into the different economic make-up of what are - let's be honest - two very distinct regions in many ways.
So while IT and automotive sectors may be stronger in the West, so food and retail remain big pulls in the East.
On a more general level our sector breakdown (see panel) shows that property and IT remain big drivers of fast growth. In the latter case it is proof that companies that remain at the cutting edge of the mobile and wireless telecoms industry can still thrive. Elsewhere the engineering, food and recruitment sectors figure strongly
Keys to success of our fastest growers
As part of our research we sent a questionnaire to every managing director of our fastest 50 asking them for their views on why they had achieved such startling growth.
What has been the biggest driver of your growth?
No surprises here that quality of employees, a strong management team, a culture of rewarding success and sheer hard work were high up the list. As mentioned earlier, spotting a niche market and offering a unique service to clients were also crucial factors. In turn, the development of tailored customer solutions was pivotal, as was a strongly diverse product range. Focusing on industry sectors less affected by economic slowdowns was also cited by more than one respondent, while some also adhered to the "being in the right industry at the right time" line. Many of our 50 in each region benefited from acting for one major client. Hanging on to those clients is of course the key to ensuring that they remain on our list in future years.
"The enthusiasm to deliver what we say we will deliver." Mainland Contractors
Is the Midlands a good place to grow your business?
The answers here were generally positive with many citing the Midlands' obvious strategic strengths at the heart of the country as easily the strongest plus point. Many thought the central location gave them a strong advantage over competitors, while also stressing the importance of new road links.
"Yes. A natural place to position the sorting hubs and corporate HQ of a parcels/logistics provider" Lynx Express
What are the biggest issues facing fast-growing businesses in the Midlands and the biggest barriers to growth?
If the answers we received here are anything to go by, the region has cause to worry. Far and away the biggest barrier to growth that firms were experiencing was the ability (or lack of it) to recruit the right quality of employees and hang onto them. Record low unemployment and an increasingly transient workforce, coupled with pockets of communities where there is an unwillingness to change, were cited as strong reasons for the problem. And when they have got the workforce they need, concerns over employment legislation were also high up the list. A crumbling transport infrastructure also came in for criticism, while a few blamed risk-averse financial institutions for not backing them at key moments.
Employment law and employee rights are getting very complicated and costly if errors are made." J Richardson & Sons
What sources of external finance have you used to grow?
The bank overdraft came out easily on top here with almost 40 per cent using it as a key cornerstone of their finance. Bank term lending wasn't far behind at 29 per cent, while invoice finance, venture capital, asset finance and development capital all accounted for just under 10 per cent. Somewhat surprisingly, not a single firm quoted a private investor or business angel as having backed their business.
What finance is critical to your growth over the next three years?
This time bank term lending came out on top (at 33 per cent) while 25 per cent envisaged further use of their overdraft to grow. Venture capital and development capital figured far more prominently with more than a third expressing interest in one or the other. Eight per cent said they would look at using invoice finance.
How do you ensure your management team is motivated?
We asked our bosses how they motivated their workforce. A good, regular appraisal format combined with strong attention to human resources and staff development were high up the list. Share options, bonus schemes and financial incentives figured strongly too.
"Substantial incentive schemes coupled with phenomenal career progression opportunity." Caudwell Group
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