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2016 WEST REPORT THE MIDLANDS

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2016 WEST THE MIDLANDS REPORT

SUBHEADING LEVEL 1 Body text

TABLE OF CONTENTS AN HISTORIC OPPORTUNITY

Welcome 01 The West Midlands has a lot to shout about. As one of the main economic powerhouses of the UK, it encompasses a wide range of companies that lead not just in this country but What’s happening where 02 internationally, too. And right now the region faces an historic opportunity. Infrastructure 04 With the creation of the West Midlands Combined Authority comes a chance for industry to have a greater say than ever in the allocation of resources to critical pillars of competitiveness Property 06 such as infrastructure, property, skills and welfare. We believe it is a chance that cannot be Skills and education 08 ignored. That’s why we are dedicating this, our second edition of the West Midlands Report, to an Healthcare 10 in-depth review of the Combined Authority and what it could mean for business in the region. International 12 We also, again, highlight the top 200 West Midlands businesses by turnover.

The West Midlands Top 200 14 We hope you enjoy it.

Top 200 Profile 16 WEST MIDLANDS TOP 200 OVERVIEW BDO West Midlands contacts 18 2015 2014 CHANGE Turnover £130.49BN £124.11BN 5% Operating profit £10.43BN £10.28BN 1% Profit before tax £8.58BN £9.48BN -9% Profit after tax £6.67BN £7.64BN -13% Dividend £1.97BN £2.58BN -24% No. of employees 648,680 629,524 3% Total remuneration £17.09BN £16.46BN 4% Total directors remuneration £298.76M £264.26M 13% Productivity (per employee) £52K £51K 2%

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welcome

How will we remember this time Within the West Midlands, business is While it is clearly the job of politicians when we look back in the future? booming, with the automotive sector to tackle these issues, business leaders alone due to create 20,000 new jobs in cannot stand by idly waiting to be asked for It’s an important question. Our 4 current transition to a Combined the next two years, according to reports . input. With the Combined Authority and In Birmingham, the private sector created the “Midlands Engine” we are seeing the Authority, confirmed last 5 21,000 jobs last year, with the highest creation of important roadmaps that will November in an ‘historic’ £1bn employment rate of any of the eight largest dictate our ability to compete in years to 1 devolution deal , is much more city economies outside London. come. than political window dressing. Birmingham is also now the UK’s fastest If those roadmaps are going to succeed for By uniting seven Greater Birmingham local growing regional tourist destination, with business then business leaders must step authorities and three LEPs into a single the visitor economy growing by half a billion forward and point out the direction of travel. entity, the Combined Authority will give the in just one year, to £5.98bn6. With growth In future it will not be enough to grumble West Midlands a focal point to potentially like this it would be easy to assume business that we were not properly consulted. We rival London or, indeed, any other global leaders could afford to sit back and welcome need to demand a place at the table. city. And this transition comes at a success with open arms. propitious time for us. RICHARD ROSE Nothing could be further from the truth. Lead Partner, 2 Initiatives such as the £34bn “Midlands As this edition of The West Midlands BDO West Midlands Engine for Growth” aim to build on the Report shows, taking full advantage of success of a region that has an economy the Combined Authority opportunity will of £222bn and where private sector depend on joined-up thinking spanning employment over the last year grew more areas as diverse as infrastructure and inward than three times faster than London and the investment or skills and healthcare. South East3.

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what’s happening where

A WEST MIDLANDS REGIONAL OVERVIEW Who is leading in the West Midlands business world? To find out, we have compiled a list of the region’s top 200 companies by turnover (see p14). Here, along with other highlights, is how they are split across the region…and how the balance has changed compared to last year. What emerges overall is a picture of a bustling regional business ecosystem that is well placed to take advantage of the opportunities presented by devolution. What is the challenge now? To make sure those opportunities are not missed, so the region can continue to build on its current upward trend.

BIRMINGHAM TOP 200 STATS NEWS FROM THE REGION: • Birmingham has delivered the biggest growth in start-ups of all UK core cities, attracting a 95% increase in new companies during the last financial year. The city is also still home to 7 £41K more new companies than any other regional destination . • Private sector jobs growth in Greater Birmingham at 6% was PRODUCTIVITY PER EMPLOYEE higher than in any other core city LEP area apart from the 2014 2015 West of England and well above the national growth rate of 59/200 48/200 2.3BN 2015 4.3% and London’s growth rate of 4.0%8. COMPANIES COMPANIES • Birmingham’s New Street Station is the eighth busiest in the 2.2BN 2014 country with more than 35 million passengers in a year. New £25.8BN £21.4BN Street is the only station outside London to make the top ten TURNOVER TURNOVER OPERATING PROFIT in the ‘top of the stops’ chart9.

THE BLACK COUNTRY TOP 200 STATS NEWS FROM THE REGION: • More Black Country residents are being educated to NVQ L4+ than ever before and there is a marked reduction in the percentage of people with no qualifications. However, there is 10 £37K still some way to go to reach national averages . • The Black Country is committed to expanding the PRODUCTIVITY PER EMPLOYEE availability of employment land, targeting the creation and/ 2014 2015 or transformation of 1,571 ha of high quality employment 34/200 25/200 810M 2015 land to meet the needs of expanding and new companies; COMPANIES COMPANIES currently there are only 696 ha10. 809M 2014 • Investment projects totalling £229m into transport infra- £12.5BN £11.7BN structure to support growth via the Local Growth Fund Round TURNOVER TURNOVER OPERATING PROFIT 1 and Transport Majors is currently underway or planned10.

HEREFORDSHIRE TOP 200 STATS NEWS FROM THE REGION: • In 2014/15, around 77% of Herefordshire residents aged between 16 and 64 were employed (70,900 employees and 18,900 self-employed). This was a two percentage point £55K increase in the proportion of the working age population employed from 2013/14.11 PRODUCTIVITY PER EMPLOYEE • 54% of Herefordshire’s population live in rural areas; 42% 2014 2015 in the most rural locations. Providing services to a dispersed 5/200 5/200 75.1M 2015 population across a large geographic area is a challenge.12 COMPANIES COMPANIES • £42m funding is being given to the Marches area (covering 73.5M 2014 Shropshire and Herefordshire) to create much needed homes £976.5M £1.0BN and jobs. This is the second round of funding announced.13 TURNOVER TURNOVER OPERATING PROFIT

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SHROPSHIRE TOP 200 STATS NEWS FROM THE REGION: • As part of the Marches area investment Telford will benefit from £17.4m investment to improve the road structure. Small and medium-sized enterprises will be allocated £9.5m to help 14 £48K them be more competitive. • Approximately £12m is currently being invested in the PRODUCTIVITY PER EMPLOYEE University of Wolverhampton’s Telford Innovation Campus, 2014 2015 located next to the main business parks of Telford, which 19/200 13/200 2015 is home to some 300 students studying engineering-based 37M 15 COMPANIES COMPANIES 1.3BN 2014 courses as well as around 50 businesses. £5.8BN £5.0BN TURNOVER TURNOVER OPERATING PROFIT

STAFFORDSHIRE TOP 200 STATS NEWS FROM THE REGION: • The Stoke and Staffordshire Growth Deal (2015 – 2021) will see c.£97m of committed government funding resulting in up to 7000 new jobs, 1000 new homes and up to c£70m public 16 £45K and private sector investment. • 25% of working age people in the area hold a degree-level PRODUCTIVITY PER EMPLOYEE qualification, which is 9% below the average for England, 2014 2015 therefore retention of higher level skills is critical to the 23/200 36/200 1.6BN 2015 continued growth of Staffordshire.17 COMPANIES COMPANIES 836M 2014 £10.2BN £16.9BN TURNOVER TURNOVER OPERATING PROFIT

WARWICKSHIRE TOP 200 STATS NEWS FROM THE REGION: • An extra £15.3m will be invested in the region between 2016 and 2021. This is in addition to the £74.1m committed by the Government on 7 July 2014. It is hoped that 4000 new jobs £82K could be created, 1400 new homes built and £220m of public and private investment generated from this investment.18 PRODUCTIVITY PER EMPLOYEE • Construction of the inaugural building which is part of the 2014 2015 £100m Friargate Regeneration Scheme will commence early 45/200 52/200 4.9BN 2015 this year. The scheme will connect Coventry Railway Station COMPANIES COMPANIES with the city centre, whilst providing over 3 million sq ft. of 4.1BN 2014 mixed use space and creating c.15,000 jobs.19 £57.7BN £62BN • Coventry University won the title of ‘University of the Year’ in TURNOVER TURNOVER OPERATING PROFIT the Sunday Times Higher Education Awards.20

WORCESTERSHIRE TOP 200 STATS NEWS FROM THE REGION: • The Worcestershire LEP is working to create 25,000 jobs, increase Gross Value Added (GVA) by £2.9bn and contribute towards the delivery of 21,500 new homes by 2025.21 £50K • The following sectors have been identified as having particularly strong potential for growth in Worcestershire: PRODUCTIVITY PER EMPLOYEE Advanced Manufacturing, Cyber Security and Defence, Agri- 2014 2015 food and Visitor & Destination Economy.22 15/200 21/200 642M 2015 • The direct value of tourism in Worcestershire to be £638m, COMPANIES COMPANIES incorporating 6% of Worcestershire’s employees.22 899M 2014 • Worcestershire has talented and trained staff with machine £11.5BN £12.4BN manufacturing and engineering employment 85% above the TURNOVER TURNOVER OPERATING PROFIT England average.22

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infrastructure: the challenge of scale

JOHN STEPHAN Partner, BDO Corporate Finance - M&A

HS2, a bigger airport and a toll-free By investing in infrastructure, individual M6 are among the infrastructure places can be joined into one much larger projects that promise to carry regional economy that gets the attention of businesses and investors outside of the prosperity into the West Midlands. region. Such economies of scale should bring But are they enough? benefits in a progressive way. Connecting people, places, businesses and Improving connections with the rest of the markets is essential to the future of the West UK and globally creates a further multiplier Midlands. Major infrastructure projects (see effect for the region. This aggregation model INFRASTRUCTURE panel) are already having a massive impact is one we believe can be successfully pursued on the region and its fortunes, bringing PLANS GET THE by the regions’ leaders to fuel economic GREEN LIGHT confidence, investment from outside the growth and development for the benefit of region and creating local jobs and income. businesses and people. Regional chiefs signalled growing support for much- And they are not coming a moment too It can also be a catalyst to attract more needed infrastructure soon. The West Midlands is ideally placed businesses into the region to add to the local upgrades in the final weeks of for business, at the heart of the UK’s road economy and skill base. The relocation of 2015. Councillors unveiled an ambitious and rail networks and with an expanding parts of the UK operations of major financial bus, cycle, Metro and rail plan called international airport. It probably wouldn’t institutions such as Deutsche Bank and Movement for Growth, to “help the come as a surprise that half of the UK’s HSBC are leading examples of this. population is within two hours reach of the West Midlands unlock its full economic region. The benefits of improving infrastructure potential,” the Birmingham Post and links are clear and can pave the way to reported. What may be surprising, though, is the greater efficiencies and wealth for businesses The long-term, strategic investment sheer scale of activity that the region’s along with a sustainable and successful plan will support the arrival of HS2 infrastructure has to handle. Birmingham’s future development path for the region as and includes a Metro extension to train stations are the busiest outside of whole. Don’t be fazed by the big figures Birmingham airport, a wider Sprint bus London, with 1,350 trains passing through already being bandied about. We need all we network and rail links to Castle Vale, New Street daily. can get. Castle Bromwich, Moseley and Kings Meanwhile, 44 airlines serve 140 Heath. destinations from Birmingham Airport and nearly 65 million people visited Birmingham last year. These are big numbers, and are getting bigger. They support the investment levels that are underway and planned, but one of the major challenges for the region is that of creating even more scale. For an individual city or town there is a limit to how fast this can be achieved.

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SUBHEADING LEVEL 1 Body text PROJECT £M BENEFITS TO THE REGION • Birmingham New Street station 600 • Increase in annual passenger capacity by 50% to 52m redevelopment • Create £200m of private investment • Birmingham Metro tram extension 130 • Provide fast link between Snow Hill and New Street delivering 3.5m passengers pa into city centre shopping area • Coventry station scheme and North-South 74 • Improve passenger capacity and increase in train Rail frequency between Coventry and Nuneaton • Birmingham Snow Hill improvement and 357 • Improve capacity and access maintenance of Tame Valley Viaduct • Wolverhampton interchange project 100 • Improve transport gateways and connections to the city including a new rail station and Metro tram and unlock key property developments extensions • Worcester Parkway Station, located near 22 • Improved links to London, Birmingham and the West Junction 7 of M5 Country • Birmingham airport runway extension 200 • Increase in passenger capacity by 27million per annum and improve global connections • M54 motorway junction improvement 40 • Improve access to i54 Business Park including JLR engine plant • New access to A500 in Stoke 82 • Reduce congestion and improve access to Etruria Valley Enterprise area and City • Improvements to Worcestershire Hoobrook 47 • Create faster transport links for local businesses Link Road • Darlaston road infrastructure development 26 • Provide improved access for regeneration strategy including the Black Country Enterprise Zone • Birmingham City bus interchange 12 • Increase capacity and efficiency • M5 Junction 4-6a – Smart Motorway TBC • To ease traffic flow • Superfast broadband in Birmingham city 10 • Faster connections for local businesses

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property: time for big-picture thinking

GARY ROUSE Director, BDO Corporate Tax and Head of Real Estate A shortage of good industrial, The property issues facing the West Midlands commercial property investment volumes commercial and residential are so large that local responses may no eclipsed those for London26, and in the West property threatens to hamper the longer be enough to solve it, says Gary Midlands the influx of cash is exemplified West Midlands’ ability to compete Rouse, Head of Real Estate at BDO in the by projects such as the £500m Paradise on a global level. It will take a West Midlands. “Part of the challenge is development in central Birmingham. trying to understand the issues across the The trick now is to make sure the political joined-up strategy to address the whole region,” he says. challenge. transition to a more autonomous region That is why the creation of the Combined leads to synergies that will further encourage The West Midlands has enormous global Authority and moves towards a wider West this influx, rather than hampering it… opportunities and big ambitions for growth. Midlands powerhouse are so important. along with the chance for increased What it is missing, however, is large amounts Uniting local authorities can help “the region competitiveness. of space to grow. take a step back and move beyond local Jaguar Land Rover (JLR), the region’s top issues,” Rouse believes. employer, has been expanding facilities This is a debate that extends beyond 23 in Wolverhampton as land gets scarce property, he adds. Where land is scarce, in its South Birmingham heartland. In authorities may need to make it easier Birmingham, meanwhile, Savills predicts for workforces to move easily and quickly grade-A office space will reach an all-time from more distant residential areas, which 24 low by 2017 . requires an investment in infrastructure (see And land pressures on residential property previous pages). have sparked concerns about the size of new Making sure key areas within the West homes, which are now “too small for people Midlands, such as the Black Country, to live comfortably”, according to reports25. Warwick, Coventry and Worcester, all have These pressures look set to increase. strategies which are aligned to make the One of the keys to JLR’s success in the best use of the opportunities will help ensure region, for example, has been re-shoring: the the success of the Combined Authority. practice of bringing supply-chain partners Similarly, increasing the rate of new close to its base so it can profit from just-in- construction is dependent on workforce time manufacturing techniques. skills that have drained from the region in This means JLR doesn’t just need space for its recent years, requiring inputs in the shape of own operations, but also those of its supply education and training (see over). chain partners. And all the people employed The good news is that money, which has in this ecosystem need homes to live in, previously been hard to come by for property retail space to shop in, hospitals to go when development, is now starting to flow. they are ill, schools to send their children to, and so on. In the third quarter of 2015, UK regional

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EXPERT VIEW: ADRIAN CLARKE

“The Combined Authority represents a fantastic opportunity for resources to be effectively deployed at local level, by people who understand where they can create the most value for the region. However, whatever format of local government is in place, it remains the responsibility of the private sector, particularly property developers, investors and occupiers to make the case for development. It will be interesting to see the level of responsibility the Combined Authority has in practice. It’s going to be working across the local authorities, who will each have their own interests, but one would hope they will understand that by working together in a cohesive way we can build a region that is better for everyone. In my view, Birmingham in particular has been very proactive in recent times, Adrian Clarke is the Finance Director at IM but this approach needs to be mirrored elsewhere. Properties, one of the The Combined Authority now represents an opportunity for a more consistent UK’s largest privately approach across the region, with authorities picking up best practice from those owned property groups. that have been more successful in attracting investment in recent years. The mayoral elections in 2017 will be very important to the success of the Combined Authority. It is essential that the right calibre of individual can be identified, someone who has the gravitas and the vision to bring the local authorities together, and to manage the inevitable conflicting views that will exist within the Combined Authority, to achieve the progress so many of us are working to support.”

EXPERT VIEW: SIMON FARRANT

“With Birmingham being so well connected and many big companies wanting representation, given the lack of recent office development we are now struggling for enough office stock. Given the limited existing opportunities in the city centre, a fresh wave of development is required for demand to be satisfied, which will have the effect of expanding the overall market size and driving rents to new headline figures. In terms of industrial space, demand driven by businesses related to the car and advanced engineering industries have pushed rents to new levels along the M42 corridor, which has had a significant knock-on benefit for the Black Country, Simon Farrant is the which is picking up elements of the new and latent demand. Managing Director of GBR Phoenix Beard, an Just thinking as one region, instead of in isolation and competing, can only award-winning property lead to benefits in the future. As a region we are much better located than the consultancy with a blue- Northern Powerhouse and we’ve got a grace period of at least 10 years before chip client portfolio. HS2 reaches the North. It’s that joined-up thinking ability that’s key to making this work.”

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KYLA BELLINGALL Partner, BDO Business Assurance – Not for Profit With the West Midlands facing a “But given the high quality and EXPERT VIEW: PAUL THANDI technologically advanced industry that the chronic skills shortage, business “I do think the private sector is engaging West Midlands is renowned for, it is worrying with the pubic sector, and that’s good. But leaders must push for devolution to note that the region has a significant small-to-medium businesses don’t know to include education and training shortage of skills. Skills training at level 4 or what’s available. There are so many schemes above is reported to be 21% for the region, packages that will guarantee a out there they don’t know where to turn. capable workforce in the future. 6% points below the national average.” Finding the time to engage with agencies or She goes on to say that “a lack of skills will It’s a serious problem. As business booms channels that can help them is a challenge restrict economic growth, particularly when across the West Midlands, the biggest we must work better at solving.” competition nationally and globally for this concern for the private sector is not where pool of talent is increasing.” to find work, but where to find the people who will do the work. Polls among business Bellingall believes that “the complexity of Paul Thandi is the Chief leaders have revealed up to 77% struggled to the national education and skills system, 27 executive officer at The NEC find the right people in 2015 . both in terms of structure and funding, Group, a major employer in the makes it difficult to navigate and can result The education sector is responding with region. in a disconnect between demand and supply. increased investment, such as a £41m campus extension at Birmingham City “At the micro level, individual providers University. Students will be delighted; deliver education provision driven by EXPERT VIEW: RICHARD BUTLER their counterparts at the University of government funding, policies and priorities.” “Part of the answer to the skills challenge Birmingham already enjoy the best graduate For the West Midlands to close the skills is to widen the net of potential recruits. In employment prospects in the UK, according 28 gap she considers it “essential that regional manufacturing and engineering there’s a to The Times . leaders break through the complexity of skills gap, but relatively very few women But more is needed. According to data from skills provision and funding to formulate going in. Financial and business services is the Office of National Statistics, published a high-level strategic plan for skills, taking growing significantly, but not recruiting from in the Centre for Economics and Business account of demand now and for the future.” ethnic minorities.” Research Irwin Mitchell UK Powerhouse She adds: “This needs to go further than report of 2013, the West Midlands has the just aligning demand and supply. It needs to highest share of unqualified 16-to-64 year actively manage the talent pipeline ensuring olds of any UK region bar Northern Ireland. Richard Butler is the West that young people are encouraged and Midlands Director for the “The West Midlands is home to a wealth supported early on into career paths that Confederation of British of education providers that are recognised help drive regional growth.” Industry. for their contribution to both the local and national economy,” says Kyla Bellingall, BDO Business Assurance Partner and Head of Not for Profit. “The region’s 12 universities alone contribute an estimated £4bn.”

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EXPERT VIEW: RICHARD HALSTEAD Industry has belatedly realised “If you talk to business, there is a clear skills gap in manufacturing and engineering. That skills its“ loss and started to take gap has been on two fronts: technical skills, and leadership and management skills. Neither of these has been fostered since the 1990s. Nor are they skills you will usually pick up at school. responsibility for solving the Industry has belatedly realised its loss and started to take responsibility for solving the problem. EEF, for example, runs problem. EEF, for example, runs an apprentice training centre in Birmingham that has gone an apprentice training centre in from 90 to more than 200 first-year students in the last three years. Birmingham that has gone from Going forward, however, there is a worry about finding enough apprentices looking for a “ career in engineering or manufacturing. In part this is down to outdated perceptions of jobs in 90 to more than 200 first-year industry being ‘dirty’. students in the last three years.

But increasingly the low-take up of science, technology, engineering and maths subjects at RICHARD HALSTEAD school means that many youngsters wouldn’t be suited for such a career anyway.

What is clear is that the private sector has to take an active role in developing skills and Richard Halstead is training to solve its employee shortages, since there is competition for this talent. Schools are the Region Director now trying to keep students in education because they get paid per individual. for Midlands and the East at EEF, In this respect, the creation of a West Midlands Combined Authority and regional powerhouse the manufacturers’ gives the private sector an added opportunity to state what it needs, in terms of skills, organisation. to remain competitive. It’s a very exciting opportunity. But you need strong business engagement.”

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MARTIN CHARTERS Partner, BDO Healthcare Advisory

The NHS is stretched to the point system works, says Martin Charters, BDO focused on supporting older people to stay that a radical rethink of how we Healthcare Advisory Partner. “There are a fitter and live independently for longer. number of macro factors at work,” he says, GPs are collaborating more effectively, with deliver care is needed to ensure a “such as an ageing population, a huge rise vanguards such as Modality Partnership sustainable future. in diabetes and obesity-related issues, and building larger partnerships and federations, people living longer with chronic disease.” and linking at scale with community, mental Healthcare in the West Midlands is stretched health and social care teams to deliver to the limits. After the first quarter of the The current health system is geared pro-active care and greater levels of support current financial year, 27 NHS trusts were in towards treating people when they become outside hospitals. deficit across the Midlands and the East, with ill, with payments focused on rewarding an accumulated debt of more than £171m. inputs, activity and procedures. This needs The creation of the West Midlands Combined The situation reflected the national picture. to change to a focus on payment for Authority and Midlands Powerhouse prevention, early intervention and delivering programmes provides additional momentum In October 2015 regulators said the NHS better outcomes. There will still be the need and a unique opportunity for politicians to in general faced the biggest financial crisis 29 for excellent acute services, but more care engage and support much wider system ‘in a generation’ after racking up a £930m should be available within the home and transformation and to combine health and deficit in the first quarter of the financial local communities. social care as never before. The health of the year. Eight out of 10 UK Trusts were in the West Midlands depends on it. red. To do this effectively, you don’t just need a razor-sharp focus on patient outcomes, Furthermore, the number of people waiting but also a fully joined-up health and social for non-emergency operations was at its care service so that specialists are able highest level since 2008, while a 62-day to intervene earlier on in the evolution of waiting time target for cancer treatment medical conditions, before they become had been missed for 16 months in a row. more expensive to treat. People also need The Care Quality Commission reported that to play their part, and be supported to take three quarters of hospital trusts have safety charge of their own health and wellbeing. problems. In the West Midlands, we have some leading- The NHS has now received a relatively edge healthcare provision delivered in good settlement in the 2015 Spending organisations with international reputations, Review, which provides a breathing space such as University Hospitals Birmingham and for alleviating deficits and allowing health Birmingham Children’s Hospital. These will services to be transformed. continue to be beacons of excellence, but The NHS must take this opportunity to most health and social care delivery happens address fundamental changes in the way outside hospitals. people’s needs are met. Radical shifts are happening in primary Will things get better in future? Not without and community care. The University of a bottom-up rethink of how the healthcare Birmingham is part of a major new study

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JOHN STEPHAN Partner, BDO Corporate Finance – M&A

BDO Partner John Stephan praises The automotive sector, and Jaguar Land EXPERT VIEW: NEIL RAMI the progress being made by the Rover in particular, is a major contributor to this, driving the West Midlands into a “As a city, Birmingham has made great West Midlands on the global unique place as the only region in the UK to strides in recent years. We have the highest scene. be running a trade surplus with China and start-up rate for new companies of any Asia Pacific. region outside London, our exports are Birmingham is the top European city contributing to the UK’s balance sheet for attracting inward investment. That Further investment in skills, training and and we’re attracting about a quarter of all startling headline is from the World’s Most infrastructure from the Government’s foreign investment outside London. Competitive Cities Report 2015, published in devolution deal should help reinforce export November. The report ranks urban areas by potential. Productivity gains and innovation But there are constraints on our growth. eight key sectors of major importance to the are key aspects that the region has to focus McKinsey has suggested that two types of global economy and is judged by industry on to maintain and improve its competitive cities will be successful in future: mega- experts. edge on the international stage. cities with 10m people or more, or mid-tier cities with 4 million to 5 million. The largest city in the West Midlands Our view is that the region will also be ranks in the top slot in the four sectors of bolstered as manufacturing experiences a Clearly Birmingham will want to figure aerospace, food and beverage, machinery, move towards reshoring of production that among these, so the development of a equipment and construction, and metals. It had previously been sourced from countries functioning West Midlands metro area, ranks second in automotive, transport and with a lower labour cost. with 4m people, is a real necessity, I would logistics, third in electronics and fourth in suggest. The devolution deal was critical.” As that cost differential has narrowed business and financial services. and service and shorter lead times have Such standing is built firmly on the local skill been recognised as an important source of base across a wide spread of sectors, and competitive advantage, local companies are Neil Rami is the Chief Executive foresight around investment in transport, bringing production and the supply chain of Marketing Birmingham, infrastructure and commercial property back to the region. the city’s strategic marketing (see previous pages). In another report, partnership The West Midlands was once known as Birmingham is ranked as the sixth best city the workshop of the world. The industrial in Europe for property investment, ahead of decline that followed has been arrested and London. progressive thinking has made the region Overseas investments grew by over 70% attractive to a global audience. last year, creating record numbers of jobs. The redesigned wheels of the West Midlands But inward investment is only part of the engine are turning again, but business equation and exporting of product and leaders should not be complacent: as shown services is another key part of regional on previous pages, the region’s growing growth. importance on a global scale can only be In this regard the West Midlands is maintained through careful planning that performing strongly, accounting for over takes into account the needs of industry. 10% of the UK’s exports from a population base that is only 6% of the UK’s total.

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EXPERT VIEW: PAUL THANDI “Who should we compare ourselves to? For me, it would be Shanghai, Tokyo, New York, Beijing or Los Angeles. It is achievable, but it’s not easy. The challenge is selling the West Midlands internationally. The Combined Authority has a real opportunity to get things done quicker than at present. It’s got the backing and clout to realise public sector growth opportunities at a private sector pace. One thing that may help is if the mayor has to answer to a board with private sector people on it.”

Paul Thandi is the Chief Executive officer at The NEC Group, a major employer in the region.

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KEY: 200. COMPANY The West Midlands Top 200 Region / Sector / Turnover £thousands High profile businesses continue to lead, by a wide margin, our list of the region’s largest 200 companies by turnover. But there are success stories throughout the Top 200 which is encouraging. RISE FALL NO MOVE NEW

1. Jaguar Land Rover Automotive PLC 25. Alstom Ltd 49. RAC Group Limited 73. Genting UK PLC Warwickshire / Manufacturer /£21,866,000 Staffordshire / Manufacturer / £1,163,600 Black Country / Motor services / £498,000 Birmingham / Leisure / £316,800

2. E.On Energy Solutions Limited 26. National Farmers Union Mutual 50. CEF Holdings Limited 74. Selco Trade Centres Limited Warwickshire / Utilities / £7,489,000 Insurance Society Limited (The) Warwickshire / Wholesale / £490,380 Worcestershire / Wholesale / £315,364 Warwickshire / Financial services / 3. GKN PLC £1,162,000 51. Sanctuary Housing Association 75. Titan Europe Limited Worcestershire / Manufacturer / Worcestershire / Social housing / Worcestershire / Manufacturer /£313,229 £6,982,000 27. Halfords Group PLC £474,000 Worcestershire / Retail / £1,025,400 76. Goodyear Dunlop Tyres UK Limited 4. Aldi Stores Limited 52. Aston Martin Holdings (UK) Ltd. Birmingham / Manufacturer / £311,484 Warwickshire / Retail / £6,893,257 28. Poundland Limited Warwickshire / Manufacturer / £468,355 Black Country / Retail / £997,803 77. Agco Limited 5. Carillion PLC 53. Sun Valley Foods Limited Warwickshire / Wholesale / £310,226 Black Country / Construction / £3,493,900 29. Listers Group Limited Herefordshire / Food / £466,283 Warwickshire / Motor retail / £958,360 78. National Veterinary Services Ltd. 6. Phoenix Life Limited 54. Calor GAS Limited Staffordshire / Veterinary / £306,722 Birmingham / Financial services / 30. Dpdgroup UK Ltd Warwickshire / Utilities / £460,000 £2,801,000 Black Country / Logistics / £872,547 79. ATS Euromaster Limited 55. Hill & Smith Holdings PLC Birmingham / Motor services / £304,023 7. AAH Pharmaceuticals Limited 31. Michelin Tyre PLC Birmingham / Manufacturer / £454,700 Warwickshire / Pharmaceuticals /£2,691,055 Staffordshire / Manufacturer / £846,490 80. TRW Limited 8. J.C.B. Service 56. Punch Taverns PLC Birmingham / Manufacturer / £303,594 Staffordshire / Manufacturer / £2,514,500 32. Marston’s PLC Staffordshire / Pubs / £448,100 Black Country / Pubs / £815,300 81. The Paragon Group of Companies 9. Mitchells & Butlers PLC 57. Rybrook Holdings Limited PLC Birmingham / Pubs / £1,970,000 33. Spirit Pub Company Limited Warwickshire / Motor retail / £438,011 Birmingham / Financial services / Staffordshire / Pubs / £800,900 £302,000 10. Jewson Limited 58. Robert Bosch Investment Ltd. Warwickshire / Wholesale / £1,876,476 34. Greenhous Group (Holdings) Ltd. Worcestershire / Manufacturer / £431,100 82. Countrywide Farmers PLC Shropshire / Motor retail / £774,811 Worcestershire / Wholesale / £298,172 11. National Express Group PLC 59. Delphi Diesel Systems Limited Birmingham / Transport / £1,867,400 35. The Midcounties Co-Operative Ltd. Warwickshire / Manufacturer / £428,383 83.Thyssenkrupp Materials (UK) Ltd. Warwickshire / Retail / £731,883 Black Country / Manufacturer / £296,569 12. Severn Trent PLC 60. Westbridge Foods Limited Warwickshire / Utilities / £1,801,300 36. Central England Co-Operative Ltd. Worcestershire / Food / £425,456 84. Allen Ford (UK) Limited Staffordshire / Retail / £717,845 Warwickshire / Motor retail / £290,568 13. Wolseley UK Limited 61. Mentass Limited Warwickshire / Wholesale / £1,758,046 37. Sims Group UK Limited Birmingham / Wholesale / £387,472 85. Alpine Electronics of U.K. Limited Warwickshire / Manufacturer / £684,376 Warwickshire / Retail / £286,732 14. IMI PLC 62. Adams Foods Limited Birmingham / Manufacturer / £1,692,000 38. Doncasters Group Limited Staffordshire / Food / £386,751 86. Goodrich Actuation Systems Ltd. Staffordshire / Manufacturer / £678,900 Birmingham / Manufacturer / £280,000 15. Rigby Group (RG) PLC 63. Ricoh UK Products Limited Warwickshire / Wholesale / £1,627,535 39. Headlam Group PLC Shropshire / Manufacturer / £384,588 87. Cookson Precious Metals Limited Warwickshire / Wholesale / £635,242 Birmingham / Manufacturer / £272,622 16. Bet365 Group Limited 64. LAF Holdings Limited Staffordshire / Leisure / £1,570,625 40. Enterprise Inns PLC Shropshire / Food / £376,100 88. Eriks Industrial Services Limited Birmingham / Pubs / £632,000 Black Country / Wholesale / £272,168 17. Compass Contract Services (U.K.) Ltd. 65. Holland & Barrett Retail Limited Birmingham / Leisure / £1,536,791 41. Schneider Electric Limited Warwickshire / Retail / £368,823 89. Timet UK Limited Shropshire / Manufacturer / £611,305 Birmingham / Manufacturer / £271,171 18. Muller UK & Ireland Group LLP 66. GE Energy Power Conversion UK Shropshire / Manufacturer / £1,395,593 42. Homeserve PLC Limited 90. Johnsons Cars Limited Black Country / Insurance / £584,200 Warwickshire / Utilities / £351,708 Worcestershire / Motor retail / £270,270 19. Melrose Industries PLC Birmingham / Manufacturer / £1,377,500 43. Finning (UK) Limted 67. Pirelli UK Tyres Limited 91. Dignity PLC Staffordshire / Wholesale / £568,603 Staffordshire / Manufacturer / £345,054 Birmingham / Funeral services / £268,900 20. Molson Coors Brewing Company (UK) Limited. 44. Impello PLC 68. Telent Limited 92. Wesleyan Assurance Society Staffordshire / Beverage / £1,372,364 Warwickshire / Utilities / £562,182 Warwickshire / Telecoms / £331,800 Birmingham / Financial services / £264,900

21. Halcyon Topco Limited 45. Volvo Group UK Limited 69. Baxi Heating UK Limited 93. Centresoft Limited Staffordshire / Healthcare / £1,366,436 Warwickshire / Motor retail / £561,441 Warwickshire / Manufacturer / £319,771 Birmingham / Wholesale / £263,267

22. Kcad Holdings I Limited 46. Pertemps Network Group Limited 70. Yamazaki Mazak U.K. Limited 94. AGA Rangemaster Group PLC Birmingham / Construction / £1,353,748 Warwickshire / Recruitment / £555,210 Worcestershire / Manufacturer / £319,134 Warwickshire / Manufacturer / £261,100

23. A.F.Blakemore And Son Limited 47. International Automotive 71. Aviagen International Finance 95. Epwin Group PLC Black Country / Wholesale / 1,191,658 Components Group Limited Limited. Birmingham / Manufacturer / £259,500 Warwickshire / Manufacturer / £537,359 Warwickshire / Food / £319,027 24. Tulip Limited 96. The Best Connection Group Limited Warwickshire / Food / £1,170,207 48. Sumitomo Electric Wiring Systems 72. Godiva Mortgages Ltd. Worcestershire / Recruitment / £254,701 (Europe) Limited Warwickshire / Financial services / Staffordshire / Manufacturer / £509,104 £318,083

14 THE WEST MIDLANDS REPORT 2016 | BDO LLP OUR REVIEW OF THE BEST COMPONENTS THE REGION HAS TO OFFER | BDO LLP

97. ZF Lemforder UK Limited 124. Dyon UK Limited 151. Meyer Timber Group Limited 178. CMS (Kidderminster) Limited Black Country / Manufacturer / £246,609 Warwickshire / Extraction & mining / Staffordshire / Manufacturer / £145,801 Worcestershire / Motor retail / £122,615 £176,913 98. Magna Interiors (UK) Limited 152. Ingeus UK Limited 179. Riviera Tours Limited Warwickshire / Manufacturer / £241,776 125. Eagle Superco Limited Warwickshire / Welfare / £145,537 Staffordshire / Leisure /£122,540 Staffordshire / Childcare / £176,018 99. Warwick Holdings Limited 153. VAX Limited 180. M.V. Kelly Limited Birmingham / Motor retail / £241,343 126. Bridgnorth Aluminium Limited Birmingham / Wholesale / £143,106 Birmingham / Construction / £122,146 Shropshire / Manufacturer / £175,499 100. Cedo Holdings Limited 154. The Works Stores Limited 181. Seafresh Group (Holdings) Ltd. Shropshire / Manufacturer / £239,771 127. The Woodard Corporation Birmingham / Retail / £141,684 Worcestershire / Food / £121,802 Staffordshire / Education / £175,282 101. Hydriades IV Limited 155. CPC Foods Limited 182. Birmingham Airport Holdings Ltd. Black Country / Utilities / £238,368 128. Leoni Wiring Systems U.K. Limited Warwickshire / Food / £140,950 Birmingham / Airport / £121,158 Staffordshire / Manufacturer / £171,386 102. Stadco Automotive Limited 156. Reach2 Limited 183. Keltruck Limited Shropshire / Manufacturer / £232,400 129. East End Foods Holdings Limited Staffordshire / Education / £138,706 Black Country / Motor retail / £120,702 Black Country / Food / £170,276 103. Fedex UK Limited 157. Dana UK Axle Limited 184. Ishida Europe Ltd. Staffordshire / Logistics / £230,189 130. L A International Holdings Limited Warwickshire / Manufacturer / £138,085 Birmingham / Manufacturer / £120,116 Staffordshire / IT / £170,061 104. Lyreco UK Limited 158. CP Foods (UK) Limited 185. National Exhibition Centre Shropshire / Wholesale / £229,718 131. Briggs Equipment UK Limited Worcestershire / Food / £136,911 Limited (The) Staffordshire / Wholesale / £168,813 Birmingham / Leisure / £120,081 105. K.T.C. (Edibles) Limited 159. Renault Trucks UK Ltd Black Country / Food / £225,499 132. Joy Global (UK) Limited Warwickshire / Motor retail / £135,431 186. Alliance Medical Group Ltd. Worcestershire / Manufacturer / £168,199 Warwickshire / Healthcare / £119,600 106. Orbit Group Limited 160. Wyman-Gordon Limited Warwickshire / Social housing / £220,658 133. Midland Heart Limited Herefordshire / Manufacturer / £133,936 187. M And M Direct Limited Birmingham / Social housing / £167,884 Herefordshire / Retail / £119,336 107. Alliance Automotive UK Limited 161. Special Metals Wiggin Limited Birmingham / Wholesale / £217,360 134. Premier Paper Group Limited Herefordshire / Manufacturer / £133,437 188. Ashland Specialties UK Limited Birmingham / Wholesale / £167,594 Worcestershire / Manufacturer / £119,171 108. Bridgestone UK Limited 162. LSP Holding (UK) Ltd Warwickshire / Wholesale / £211,167 135. Mueller Europe Limited Black Country / Manufacturer / £131,764 189. Qaisar Limited Black Country / Manufacturer / £166,475 Birmingham / Telecoms / £119,162 109. Palletways Group Limited 163. Castings Public Limited Company Staffordshire / Logistics / £208,173 136. Culina Logistics Limited Black Country / Manufacturer / £131,268 190. Comau U.K. Limited Shropshire / Logistics / £162,780 Warwickshire / Manufacturer / £118,303 110. T.G. Holdcroft (Holdings) Limited 164. Mertex UK Limited Staffordshire / Motor retail / £206,118 137. Ideapark Limited Warwickshire / Wholesale / £131,246 191. Reform Acquisitions Limited Worcestershire / Fostering / £161,540 Birmingham / Leisure / £116,920 111. Metalor Technologies (UK) Ltd 165. Macfarlane Group UK Limited Birmingham / Manufacturer / £203,670 138. Assa Abloy Limited Warwickshire / Manufacturer / £130,162 192. GVA Grimley Holdings Limited Black Country / Manufacturer / £160,478 Birmingham / Property advisors / 112. Beiersdorf UK Limited. 166. B.E. Wedge Holdings Limited £115,318 Birmingham / Wholesale / £199,235 139. W.Brindley (Garages) Limited Black Country / Manufacturer / £129,598 Black Country / Motor retail / £158,356 193. Voyage Care Holdco Limited 113. Goodrich Control Systems 167. Saint-Gobain Glass (United Staffordshire / Healthcare / £114,812 Birmingham / Manufacturer / £188,300 140. Davies Turner Holdings PLC Kingdom) Limited Warwickshire / Logistics / £158,003 Warwickshire / Manufacturer / £128,842 194. Secure Trust Bank Public Limited 114. Logson Limited Company Birmingham / Manufacturer / £187,883 141. A.L.E. UK Holdings Limited 168. Victoria P.L.C. Birmingham / Financial services / Staffordshire / Logistics / £157,084 Worcestershire / Manufacturer /£128,304 £113,800 115. Denso Manufacturing UK Ltd. Shropshire / Manufacturer / £185,336 142. Brose Limited 169. Fuchs Lubricants (UK) PLC 195. Novus Property Solutions Limited Warwickshire / Manufacturer / £153,802 Staffordshire / Manufacturer / £127,260 Staffordshire / Construction / £112,747 116. Mondelez UK Confectionery Production Limited 143. Fujitsu Telecommunications 170. Marubeni - Komatsu Limited 196. Claire’s European Distribution Birmingham / Food / £184,963 Europe Limited Worcestershire / Manufacturer / £127,176 Limited. Birmingham / Telecoms / £153,072 Birmingham / Retail / £110,334 117. Tangent Trading Limited 171. Goodwin PLC Black Country / Manufacturer /£184,488 144. Bromford Housing Group Limited Staffordshire / Manufacturer / £127,049 197. High Value Manufacturing Black Country / Social housing /£153,002 Catapult 118. Clinigen Group PLC 172. Lexon (UK) Limited Birmingham / Manufacturer / £109,995 Staffordshire / Pharmaceuticals /£184,359 145. Steel & Alloy Processing Limited Worcestershire / Pharmaceuticals / Black Country / Manufacturer /£152,651 £126,742 198. Thomas Vale Group Limited 119. Nimickay Limited Worcestershire / Construction / £109,913 Warwickshire / IT / £183,795 146. Marley Eternit Limited 173. Enta UK Limited Staffordshire /Manufacturer/£152,000 Shropshire / IT / £125,720 199. Whittan Intermediate Limited 120. Arcelormittal Distribution Shropshire / Manufacturer / £109,708 Solutions UK Limited 147. Sandvik Limited 174. E H Smith Holdings Ltd Black Country / Manufacturer / £183,555 Black Country / Manufacturer / £150,468 Birmingham / Builders merchant / £124,769 200. Retail Solutions (Holdings) Limited Staffordshire / IT / £109,640 121. DCS INC Limited 148. Minor,Weir And Willis Limited 175. Wabtec Rail Limited Warwickshire / Wholesale / £182,940 Birmingham / Wholesale / £150,021 Staffordshire / Manufacturer / £123,399

122. Roadchef Limited 149. Kingspan Insulation Limited 176. Longdon Estates Limited Staffordshire / Leisure / £181,400 Herefordshire / Manufacturer / £148,394 Birmingham / Manufacturer / £123,353

123. Sertec Group Limited 150. ROS Roca Dennis RCV Limited 177. Aston Manor Brewery Company Warwickshire / Manufacturer / £180,773 Warwickshire / Manufacturer / £146,564 Limited Birmingham / Beverage / £122,773

THE WEST MIDLANDS REPORT 2016 | BDO LLP 15 THE MIDLANDS ENGINE GETS INTO GEAR | BDO LLP

TOP 200 PROFILE turnover analysis

BDO COMMENT: TURNOVER ANALYSIS PER REGION

The county home of 70 JLR, Coventry and Warwickshire, generates the largest amount of revenue, accounting 60 for 47.6% (£62bn) of the top 200’s £130.5bn total turnover. The biggest revenue increase 50 came from Staffordshire firms, which have increased their turnover by 66% to £16.9bn from £10.2bn the previous 40 year and now contribute 13% of the total turnover of the region’s top 200 companies. £ BILLIONS 30

2014 2015 0 GRAPH KEY: BIRMINGHAM BLACK COUNTRY HEREFORDSHIRE SHROPSHIRE STAFFORDSHIRE WARWICKSHIRE WORCESTERSHIRE

BDO COMMENT: TURNOVER ANALYSIS PER SECTOR

It is no surprise that manufacturing is 60 the region’s most imposing sector with 82 companies making the 50 regional top 200 list in 2015, increasing by nine. 40 The retail & wholesale sector is represented by 53 companies, six less 30 than last year. £ BILLIONS 20

TMT OTHER UTILITIES

MANUFACTURING SOCIAL HOUSING FINANCIAL SERVICES RETAIL & WHOLESALE LEISURE & HOSPITALITY TRANSPORT & LOGISTICS HEALTH & SOCIAL WORK

PROPERTY & CONSTRUCTION

16 THE WEST MIDLANDS REPORT 2016 | BDO LLP OUR REVIEW OF THE BEST COMPONENTS THE REGION HAS TO OFFER | BDO LLP

TOP 200 PROFILE further analysis

PERCENTAGE OF COMPANIES IN THE TOP 200 LIST BY REGION AND SECTOR REGIONS GRAPH KEY: Birmingham Black Country Herefordshire Shropshire Staffordshire 11% 15% Warwickshire 24% Worcestershire

8% 3% 14% SECTORS 30% 4% 4% Manufacturing 22% 37% 5% 41% Retail & 4% wholesale 26% REGIONS 7% SECTORS Property & 6% 2 20 construction 014 13% 14 12% 3% Leisure & 17% hospitality 30% 9% 2% Transport & 2 2 logistics 015 2% 015 Utilities 6% 18% 27% Other

PRODUCTIVITY ANALYSIS (PER EMPLOYEE) BDO COMMENT: The average 90 productivity per employee is £52K 82 80 for the top 200 companies in the 70 West Midlands which is on par with the 60 national average. WEST MIDLANDS AVERAGE 55 Warwickshire & Coventry companies 50 48 50 45 are out performing 41 40 the average with 37 £82K productivity and Black Country £ THOUSNADS 30 businesses are lagging behind with 20 £37K. 10

BIRMINGHAM BLACK COUNTRY HEREFORDSHIRE SHROPSHIRE STAFFORDSHIRE WARWICKSHIRE WORCESTERSHIRE

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BDO WEST MIDLANDS CONTACTS

Our commitment to the West Midlands is reflected in the breadth and experience of our team. We pride ourselves in being able to offer all the ingredients for excellent mainclient service with our resourcespage in the title region, while providing the national and international support you would expect of a major global firm.

RICHARD ROSE Lead Partner, West Midlands t: +44 (0)121 352 6218 m: +44 (0)7800 682 745 [email protected] SUBHEADING LEVEL 1 KYLA BELLINGALL BodyPartner, text Business Assurance – Not for Profit t: +44 (0)121 265 7220 m: +44 (0)7786 198 735 [email protected]

ROGER BUCKLEY Partner, Corporate Finance – M&A t: +44 (0)121 352 6213 m: +44 (0)7966 373 914 [email protected]

MARTIN CHARTERS Partner, Healthcare Advisory STEVE HALE DAVID POOLER t: +44 (0)121 352 6200 Partner, Business Assurance Partner, Corporate Tax m: +44 (0)7813 547 974 t: +44 (0)121 352 6268 t: +44 (0)121 352 6208 [email protected] m: +44 (0)7971 405 489 m: +44 (0)7795 052 559 [email protected] [email protected] MALCOLM COOK Partner, Corporate Finance - Transaction TOM LAWTON KIM RAYMENT Services Partner, Business Assurance and National Partner, Business Restructuring t: +44 (0)121 352 6366 Head of Manufacturing t: +44 (0)121 352 6216 m: +44 (0)7831 590 025 t: +44 (0)121 352 6372 m: +44 (0)7734 982 174 [email protected] m: +44 (0)7778 343 346 [email protected] [email protected] GRAHAM ELSWORTH GARY ROUSE Partner, Corporate Finance - Transaction ANDREW MAIR Director, Corporate Tax – Real Estate Services Partner, Business Assurance t: +44 (0)121 352 6252 t: +44 (0)121 352 6212 t: +44 (0) 121 265 7250 m: +44 (0)7976 198 489 m: +44 (0)7966 373 914 m: +44 (0) 7710 157 939 [email protected] [email protected] [email protected] JOHN STEPHAN TIM FOSTER SARAH MOSS Partner, Corporate Finance – M&A Director, Risk Advisory Services Partner, Private Client Tax – Medical t: +44 (0)121 265 7264 t: +44 (0)121 200 6917 t: +44 (0)121 352 6365 m: +44 (0)7979 706 731 m: +44 (0)7583 114 121 m: +44 (0)7791 397 696 [email protected] [email protected] [email protected] TOBY STEPHENSON IAN GOULD SAT PLAHA Partner, Business Assurance Partner, Business Restructuring Partner, Forensic Services t: +44 (0)121 265 7293 t: +44 (0)121 352 6285 t: +44 (0)121 352 6210 m: +44 (0)7973 732 390 m: +44 (0)7957 819 329 m: +44 (0)7720 078 030 [email protected] [email protected] [email protected]

18 THE WEST MIDLANDS REPORT 2016 | BDO LLP OUR REVIEW OF THE BEST COMPONENTS THE REGION HAS TO OFFER | BDO LLP

DOCUMENT SOURCES

1. Birmingham Post - Birmingham agrees elected 10. Black Country Consortium - Annual 21. Worcestershire LEP - About WLEP mayor for 2017, 17 November 2015 Economic Review, March 2015 http://www.wlep.co.uk/about/worcestershire/ http://www.birminghampost.co.uk/news/ http://www.the-blackcountry.com/intelligence/ about-wlep/ regional-affairs/birmingham-agrees- intelligence-reports/annual-economic-review 22. Worcestershire LEP – Growth Sectors elected-mayor-2017-10453952?ptnr_ 11. Herefordshire Council - Economic activity of rid=150896&icid=EM_BirminghamPost_Nletter_ http://www.wlep.co.uk/about/worcestershire/ residents, 12 October 2015 News_Mediumteaser_Text_Story2 growth-sectors/ https://factsandfigures.herefordshire.gov.uk/ 2. TheBusinessDesk - Midlands Engine revs up 23. Express & Star – Jaguar Land Rover to invest understanding-herefordshire/growing-the- for growth as £34bn masterplan is launched, 4 £450 to double size of Wolverhampton engine economy/economic-activity-of-residents.aspx December 2015 plant, 24 November 2015 12. Herefordshire Council – Medium Term http://www.thebusinessdesk.com/westmidlands/ http://www.expressandstar.com/ Financial Strategy 2015/16 – 2016/17 news/728965-midlands-engine-revs-up-for- business/2015/11/24/jaguar-land-rover-to-invest- growth-as-34bn-masterplan-is-launched.html https://www.herefordshire.gov.uk/ 450-million-to-expand-wolverhampton-engine- media/2365390/medium_term_financial_ plant/ 3. GOV.UK - Midlands growth prospectus, 4 strategy_2015-17.pdf December 2015 24. West Midlands Combined Authority 13. The Marches LEP – Growth Deal, 12 January https://www.gov.uk/government/publications/ http://www.westmidlandscombinedauthority. 2016 midlands-growth-prospectus org.uk/ http://www.marcheslep.org.uk/what-we-do/ 4. TheBusinessDesk - Special Report: West 25. Birmingham Post - New build homes in West growth-deal/ Midlands automotive sector set for 20,000 jobs Midlands ‘are like rabbit hutches’, 4 December boost, 7 December 2015 14. The Marches LEP – Telford Growth Package, 2015 12 January 2016 http://www.thebusinessdesk.com/westmidlands/ http://www.birminghampost.co.uk/business/ news/729001-special-report-west-midlands- http://www.marcheslep.org.uk/what-we-do/ commercial-property/new-build-homes-west- automotive-sector-set-for-20-000-jobs-boost. growth-deal/telford-growth-package/ midlands-10546225 html 15. The Marches LEP – Advanced Manufacturing, 26. Lambert Smith Hampton - The regions 5. Birmingham Chamber of Commerce Group 12 January 2016 outpace London, 30 October 2015 - Chamber urges new council chief to recognise strength of private sector http://www.marcheslep.org.uk/invest/whos-here/ http://www.lsh.co.uk/commercial-property- advanced-manufacturing/ research/2015/10/the-regions-outpace-london http://www.birmingham-chamber. com/BCCG/Enews/ViewArticle. 16. Stoke-on-Trent and Staffordshire Local 27. Business Quarter Room501 publishing - aspx?NewsID=1502&StoryID=0 Enterprise Partnership – Growth Deal Skills shortage ‘tops business leaders concerns’, 24 November 2015 6. TheBusinessDesk - Record visitor numbers add http://www.stokestaffslep.org.uk/delivering- £500m to Birmingham economy, 22nd October growth/deals/growth-deal/ http://www.bqlive.co.uk/2015/11/24/skills- shortage-tops-business-leaders-concerns 2015 17. Stoke-on-Trent and Staffordshire Local http://www.thebusinessdesk.com/westmidlands/ Enterprise Partnership - Stoke-on-Trent & 28. Birmingham Post – Graduate employment news/727353-birmingham-announces-record- Staffordshire LEP SEP – Strategy accolade for the University of Birmingham, 21 September 2015 visitor-numbers.html http://www.stokestaffslep.org.uk/resources/ 7. Greater Birmingham & Solihull LEP – publication-library/ http://www.birminghampost.co.uk/news/local- news/graduate-employment-accolade-university- Birmingham welcomes the greatest increase in 18. GOV.UK - Coventry and Warwickshire: birmingham-10086950 start-ups in the UK, 24 November 2015 Growth Deal, 29 January 2015 29. The Telegraph - NHS faces biggest financial http://centreofenterprise.com/2015/11/24/ https://www.gov.uk/government/publications/ crisis ‘in a generation’, 9 October 2015 birmingham-welcomes-the-greatest-increase-in- coventry-and-warwickshire-growth-deal start-ups-in-the-uk/ http://www.telegraph.co.uk/news/nhs/11921381/ 19. Coventry City Council - Tower crane NHS-faces-biggest-financial-crisis-in-a- 8. Greater Birmingham & Solihull LEP – Latest erected over Coventry as Friargate prepares for generation.html ons employment survey highlights regional construction, 23 December 2015 economic success, 24 September 2015 http://www.coventry.gov.uk/news/article/1542/ http://centreofenterprise.com/2015/09/24/ tower_crane_erected_over_coventry_as_ latest-ons-employment-survey-highlights- friargate_prepares_for_construction regional-economic-success/ 20. Coventry University - Coventry named 9. TheBusinessDesk - Birmingham New Street ‘University of the Year’ by Times Higher Education the only station outside London in UK’s busiest magazine, 26 November 2015 top ten list, 17 December 2015 http://www.coventry.ac.uk/primary-news/ http://www.thebusinessdesk.com/westmidlands/ coventry-named-university-of-the-year-by- news/729439-birmingham-new-street-only-non- times-higher-education-magazine/ london-station-in-uk-s-busiest-top-ten-list.html

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2016 WEST

THE MIDLANDS REPORT

The West Midlands Report is published by BDO, a professional services firm committed to delivering exceptional service that exceeds client expectations, empowered by people, not process. Visit us at Two Snowhill, Birmingham B4 6GA, or call us on +44 (0) 121 352 6200.

SELECTING THE SAMPLE In addition, some of the financial information will be based on UK generally The companies included in the West accepted accounting principles accounts Midlands Report were selected by and others will be based on International conducting an initial search of FAME for Financial Reporting Standards accounts. The companies with both a registered office financial information in this report has been and trading address in the West Midlands compiled exclusively from publicly available postal areas (‘the region’). We eliminated information under the key assumptions any companies that have a parent company, and limitations outlined above. It has been where there are consolidated financial designed solely to illustrate trends in the statements produced, also based in the financial performance of a representative region so that there is no duplication of data sample of companies in the region. BDO has in our sample. We also eliminated companies not carried out any verification work on the that were judged not to be trading or financial information in this Report and gives controlled within the region. The ‘current no opinion on the financial information. BDO period’ financial information is based on makes no claims, promises or guarantees latest filed accounts available on FAME as about the accuracy, completeness or at 17 November 2015. Our previous report adequacy of the contents of this report. No ‘West Midlands 2015’ comprised the top 200 reliance should be placed on the information companies, with financial information based contained in this report and, to the fullest on latest filed accounts available on FAME extent permitted by law; BDO does not as at 11 November 2014. To produce the accept or assume any responsibility to financial information we simply aggregated anyone for the information contained in the data contained within FAME, with no this report. BDO has made a number of consolidation adjustments. Depending on judgements in aggregating the information the accounts filed, some of our figures will into a consistent format. BDO does not, be based on consolidated accounts and and cannot, warrant the completeness or some on entity-only accounts. accuracy of the adjustments made during the aggregation.

20 THE WEST MIDLANDS REPORT 2016 | BDO LLP OUR REVIEW OF THE BEST COMPONENTS THE REGION HAS TO OFFER | BDO LLP

THE WEST MIDLANDS REPORT 2016 | BDO LLP 21 2016 WEST

THE MIDLANDS REPORT

for more information please contact: HELEN WILLIAMS t: +44 (0) 121 352 6287 [email protected]

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