Tech Gears up for Growth Why Manufacturing Innovation Has Made Worcestershire It’S Home 16 2 the Worcestershire Growth Report 2019 | Bdo Llp

THE WORCESTERSHIRE GROWTH REPORT OCTOBER 2019

TECH GEARS UP FOR GROWTH WHY MANUFACTURING INNOVATION HAS MADE WORCESTERSHIRE IT’S HOME 16 2 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

THE WORCESTERSHIRE GROWTH REPORT OCTOBER 2019

CONTENTS 03 WELCOME 04 SECTOR ANALYSIS: INDUSTRIES LEADING GROWTH 08 COMPANY PROFILE: WORCESTER BOSCH 10 ROOM FOR ALL: THE QUEST FOR REAL ESTATE 12 M&A ROUNDUP: WHO’S BUYING WHO? 14 A FRESH PUSH TO PROMOTE THE COUNTY 16 TECHNOLOGY FOCUS: INNOVATION STEPS UP A GEAR 17 THIS YEAR’S FRONT RUNNERS 18 THIS YEAR’S TOP 50 FASTEST- GROWING COMPANIES 19 YOUR BDO WORCESTERSHIRE TEAM

Last year we added to our annual While last year’s research provided a picture This edition goes to press amid continuing of prudent, UK-focused business leaders, uncertainty over Brexit and its potential analysis of Worcestershire’s this year’s trend analysis has revealed a impacts on the local business community. fastest-growing companies with remarkable level of sector consolidation In these ever-changing times, we hope original research into business across the fast-growing companies in the the findings of this report will be useful in county (see P4), despite efforts to foster shedding light on at least some aspects of leader attitudes. As our Growth industries such as technology (P9 & P16). what makes Worcestershire’s economy tick. Report enters its fourth year, we Whether this is a good or bad thing is Acknowledgements: figured it would be interesting to difficult to say. What it does mean, though, BDO would like to thank the take another look at long-term is that local policymakers will increasingly Worcestershire private and public sector have to bear in mind which industries are trends. Our hunch paid off. leaders who generously gave their time to driving economic growth in Worcestershire, provide views and comments used in the while at the same time perhaps striving production of this report. to maintain some diversity in among the county’s top 50 growth stars. BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 3

A WORD FROM GARY ROUSE DIRECTOR AND HEAD OF BDO WORCESTERSHIRE

Take in the views from the Worcestershire Beacon and it is clear why our county inspired the Shire in JRR Tolkien’s Middle Earth novels. Yet while this scenery draws tourists from afar every year, increasingly we are looking to attract a new kind of visitor. As our report on p14 shows, there are moves afoot to make Worcestershire as attractive to investors and business leaders as it is to sightseers. And with good reason. Our county continues to be home to a solid group of fast-growing businesses (P18), but the diversity of that group is on the wane (see overleaf). A concentration of business growth in just a few sectors can help a region such as ours to become an industrial powerhouse. But it also exposes the economy to the risk of shocks if a high-growth sector is hit by external factors. In July, for example, Redditch-based GKN Aerospace provided cause for concern by announcing 1,000 job cuts. Fortunately for the local economy, this was a global figure over two years and thus unlikely to have a major impact on the manufacturing and precision engineering sector, whose top 50 members provided employment for around 7,000 people in the last year we were able to review. GKN Aerospace’s rationalisation programme was also largely due to internal matters and thus not relevant to other Worcestershire manufacturers. But the episode should serve as a warning that our county’s corporate golden geese should not be taken for granted.

GARY ROUSE Director BDO 4 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

WORCESTERSHIRE GROWTH REPORT ANALYSIS A TWO-HORSE RACE?

Manufacturing has done it again. The sector The top 50’s manufacturing companies have always had the that has historically been Worcestershire’s edge over retail in terms of combined turnover and revenue growth, however even in 2017, manufacturing and precision prime engine for corporate growth has once engineering businesses in Worcestershire’s top 50 fastest- more seen off competition from a vibrant growing companies were pulling in a combined £782m, retail industry that is snapping at its heels. compared to £672m for retail, wholesale and leisure. This year the difference between the sectors, in terms of This year’s top 50 fastest-growing Worcestershire companies combined turnover, remains significant. The manufacturing (P18) include 19 manufacturing and precision engineering and precision engineering companies in the top 50 made more businesses, compared to 12 retail, wholesale and leisure players. than £1.8bn in the last year under review, compared to just Jointly the two sectors account for 62% of the number of over £1.1bn for businesses in retail, wholesale and leisure. businesses in the top 50.

SECTORS IN THIS YEAR’S TOP 50 MANUFACTURING AND PRECISION ENGINEERING VERSUS RETAIL (INCLUDING MOTOR) WHOLESALE AND LEISURE, BY YEAR ManufacturingManufacturing & & PrecisionPrecision Engineering Engineering RealReal Estate Estate & Construction & Construction 20 Food & Agriculture Food & Agriculture 18 Transport & Logistics 50 16 Transport & Logistics op Retail (Including Motor) t 14

Wholesale & Leisure w Retail (Including Motor) o 12 FinancialWholesale Services & Leisure v50i e e r v 10 Technology,Financial Media Services & Telecoms 8 Technology, Media Health & Social Care & Telecoms in £bn Turnover 6 Health & Social Care 4 2 0 The number of retail companies in the top 50 has been declining 2016 2017 2018 2019 over the past three years. In our 2017 Growth Report, retail Manufacturing & Precision Retail (Including Motor) companies outnumbered manufacturers by 15 to 13. Engineering Wholesale & Leisure

TURNOVER BY SECTOR IN WORCESTERSHIRE

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

Revenue £ 000s 800,000

600,000

400,000

200,000

- Financial Food and Health & Manufacturing Real Estate & Retail Technology, Media Transport Services Agriculture Social Care & Precision Construction (Including Motor) & Telecoms & Logistics Engineering Wholesale & Leisure

Sum of turnover GBP - Year 2 Sum of turnover GBP - Year 1 Sum of turnover GBP - Last Year BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 5

WORCESTERSHIRE GROWTH REPORT ANALYSIS

But what is perhaps more noteworthy is what is going on in other Only real estate and construction seems to have maintained its albeit sectors in the list. Looking back over previous editions of the top minor presence in the top 50, with seven companies this year making a 50, there is a clear consolidation of Worcestershire’s corporate combined £274m, roughly the same as in our last Growth Report list. growth into manufacturing and retail, with other sectors gradually In a nutshell, a review of our top 50 list over the years shows that disappearing from view. business growth in Worcestershire is increasingly becoming a two- As an example, the food and agricultural sector accounted for £340m horse race between manufacturers and retailers. Jointly, these sectors of turnover in our first growth report, in 2016. That level dropped to accounted for almost 83% of turnover in this year’s top 50. £269m and then £70m in subsequent years. In this year’s top 50, three This turnover trend has a direct bearing on jobs, with manufacturing and food and agricultural sector businesses pulled in less than £46m. retail accounting for more than 11,800 out of the almost 15,300 workers It’s a similar story with professional services, which was the third- employed by the companies in this year’s top 50. Furthermore, sector largest sector by turnover in the top 50 two years ago but does not growth trends do not look likely to add much diversity to the picture. appear at all in this year’s results.

EMPLOYEE GROWTH PER SECTOR IN WORCESTERSHIRE

900

800

700

600

500

400

300 Number of Employees 200

100 - Financial Food and Health & Manufacturing Real Estate & Retail Technology, Transport Services Agriculture Social Care & Precision Construction (Including Motor) Media & & Logistics Engineering Wholesale & Leisure Telecoms Sum of turnover GBP - Year 2 Sum of turnover GBP - Year 1 Sum of turnover GBP - Last Year

While all the companies in the top 50 are naturally notable for their high growth rates relative to the rest of the Worcestershire corporate REVENUE GROWTH IN WORCESTERSHIRE ecosystem, the number of fast-growing manufacturers and retailers in our list makes it hard for them to be outstripped by other sectors. 400,000 This is not to say other sectors in the list are not growing quickly. In this 350,000 year’s top 50, for example, manufacturers have grown on average 49% over the last two years and retailers have grown 43%. 300,000 250,000 The real estate and construction companies on the list were able to beat these rates, posting 76% growth compared to three years ago, but their 200,000

declining presence in the list perhaps indicates that it is harder for such £000s Turnover 150,000 businesses to sustain high growth rates in Worcestershire. 100,000 Overall, revenues across this year’s top 50 have grown by more than 51% 50,000 compared to two years ago. That’s not far off the average growth rate of the manufacturing and retail sectors combined, once again highlighting 0 the dominance of these two industries in the driving business growth Sum of turnover Sum of turnover Sum of turnover across Worcestershire. GBP - Year 2 GBP - Year 1 GBP - Last Available Year 6 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

TOP 50 WYCHAVON IS WORCESTERSHIRE’S GROWTH CAPITAL

Worcester may be Worcestershire’s Wychavon is home to two of the top three fastest-growing companies in the county town, but it is by no shire, Excool and Transcal Engineering, means the centre of business and half the businesses in the top 10. growth in the shire. That honour Notably, this is the first time in three goes to Wychavon, which in the years that Worcestershire’s top centre last year under review accounted for business growth is not one of the county’s three northern districts. for more than £885m in turnover Worcester City, in contrast, doesn’t even from the top 50 growth make third place for business growth. Transcal Engineering, Wychavon companies located there. Top 50 growth companies in Redditch This turnover, almost 25% of the total for made almost £775m in the last year under the top 50, put Wychavon well ahead of review, or nearly 22% of the total turnover, Leading the charge for business growth in Worcester City. Little wonder. narrowly beating the £748m (21%) made Redditch is Valeo Engine Cooling UK, the by Worcester’s businesses in the list. fourth fastest grower on our list, followed by Mobility Group at number eight. What is clear from a breakdown of top revenues by district is that four districts, TURNOVER BY DISTRICT IN WORCESTERSHIRE Wychavon, Wyre Forest, Redditch and Worcester City, really dominate growth in 1,000,000 the county. In the last year under review the growth companies in these districts 900,000 made more than 89% of all the revenues 800,000 in the top 50. 700,000 At the other end of the spectrum, Malvern 600,000 Hills is home to just three companies in the 500,000 top 50, whose combined revenues of less 400,000 than £45m in the last year under review Revenue £000s Revenue 300,000 only amounted to 1.2% of the total. 200,000 Beyond this broad-brush regional analysis, 100,000 a deeper dive into the growth sectors in each district reveals distinct pockets of - Bromsgrove Malvern Hills Redditch Worcester City Wychavon Wyre Forest industry development. Thus, while Wychavon has eighteen manufacturers in our list, most of the district’s high-growth business revenue was in retail, thanks to the presence of Sum of turnover Sum of turnover Sum of turnover CP Foods (UK), one of the world’s largest GBP - Year 2 GBP - Year 1 GBP - Last Year added-value food producers, among its six top 50 retailers. BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 7

TOP 50

Seven companies in this year’s list had a turnover in excess of £100m

In Redditch, the disparity between retail floor covering manufacturer Victoria added this year the combined revenue of this top- revenue and earnings in other sectors is nearly £425m to the Wyre Forest economy earning tranche is up nearly 22% since the even more marked. The district saw the in the last year under review, while wholesale last year under review. top 50 growth retailers bringing in almost grocery retailer Primafruit contributed more Last year, the £100m-plus group made a £499m in the last year under review, than £133m to the district. total of £1.9bn, or 55% of all the revenue more than nine times the turnover of the Eight companies in this year’s list had in the top 50, whereas this year those district’s manufacturing and precision turnovers in excess of £100m. There were figures are up at £2.17bn and 57%. engineering sector. seven such big hitters in last year’s list, but This could be because Redditch is home to Johnsons Cars, one of the largest independent car dealerships in the country, TURNOVER BY DISTRICT AND SECTOR which turned over more than £432m in the last year under review. No other Redditch- 1,000,000 based company in our list achieved nine- 900,000 digit turnover in the same period. 800,000 In Worcester City, Worcestershire’s third 700,000 major centre for business growth, it is very much manufacturing that dominates the 600,000 landscape. Fast-growing manufacturing 500,000 and precision engineering companies in

Revenue £000s Revenue 400,000 the city turned over a total of more than £600m in the last year under review. 300,000 200,000 This was in part due to a high proportion of manufacturing companies in the 100,000 district’s high-growth company mix - of the - Financial Services Health and Social Care Manufacturing and Precision Engineering Real Estate and Construction Retail (including Motor) Wholesale and Leisure Technology, Media and Teleocoms Transport and Logisitics Manufacturing and Precision Engineering six Worcester-based businesses on our list, Financial Services Manufacturing and Precision Engineering Real Estate and Construction Retail (including Motor) Wholesale and Leisure Manufacturing and Precision Engineering Real Estate and Construction Retail (including Motor) Wholesale and Leisure Food and Agriculture Manufacturing and Precision Engineering Real Estate and Construction Retail (including Motor) Wholesale and Leisure Technology, Media and Teleocoms Transport and Logisitics Manufacturing and Precision Engineering two are manufacturers - but more down to the presence of two heavy hitters in particular. Worcester is home to the European headquarters of Japanese machine tool manufacturing leader Yamazaki Mazak, which saw turnover of more than £479m in the last year under review.

And the district’s other manufacturing Malvern Hills Wyre Forest growth hero is lifestyle products maker Gtech UK, which made almost £121m Worcester Bromsgrove Redditch City Wychavon in its last year. Rounding off the list of high-growth, high- Sum of turnover Sum of turnover Sum of turnover revenue companies in the county, listed GBP - Year 2 GBP - Year 1 GBP - Last Year 8 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

BOSCH DELIVERING A WARM FEELING

Think about cutting-edge technology and the humble domestic boiler is not likely to be the first thing that springs to mind. But don’t be fooled: one of the UK’s top boiler makers is very high-tech indeed, and it relies on Worcestershire engineering skills to stay ahead of the game.

Manufacturing and supplying boilers This long-term thinking comes from nationwide from its central England Worcester Bosch’s unusual corporate location, Worcester Bosch is at the forefront makeup: its parent company is a charitable of boiler innovation, winning the Which? foundation, which means it is not driven best buy endorsement a record 10 times in by short-term financial imperatives. a row. In 2019 it also became the first UK One example: Worcester Bosch ploughs company to fit out a factory with 5G, the up to 9% of profits back into product new mobile technology. development, an unusually high amount. “We’re doing a lot around Industry 4.0,” Worcester Bosch is also playing a key says Carl Arntzen, CEO. “It’s a big topic in role in the future development of the gas Germany, and therefore it’s a big topic in network by developing boilers that can Bosch. We were streaming sensors around run on hydrogen, potentially a fossil fuel- the Wi-Fi network, so it was an easy free source of heating. And local talent is extension to stream data over 5G.” leading the charge. The company was formed in 1962 and Around 1,100 of Worcester Bosch’s 1,800 named Worcester Engineering until 1987 employees are based in the county, on a when it was renamed Worcester Heat site that contains not only the company’s Systems, It was then acquired by Bosch lean manufacturing and research and in 1992. It is now hoping to transfer development functions but also sales, some of the technical knowhow from its marketing, finance and administration. factory innovations into customer homes. In a sea of mostly small-to-medium- “What we ultimately want to do is have enterprise Worcestershire employers, a connection to our product in the field,” Worcester Bosch acts as something of a Arntzen says. beacon for job hunters. But the company is aware it cannot rest on its laurels or it could lose its top talent to other corporates in the Midlands. BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 9

CARL ARNTZEN CEO | WORCESTER BOSCH It’s a big topic in Germany, and therefore it’s a big topic in Bosch.

The company recruits locally for positions Ultimately, he says: “We do it because we across the board, but “professional like to be nice people. But we need to be engineering skills are hard to find,” says competitive, too.” Arntzen, who has lived in Worcestershire And for all the company’s focus on most of his life. innovation, employees needn’t worry about To find and keep the best, Worcester Bosch their jobs being taken over by robots. In fact, complements traditional recruitment with says Arntzen, Worcester Bosch has in some apprentices across all disciplines. Each year cases dialled down the level of automation it takes on 72 standard and 25 advanced in its factory. “Our focus is on service rather apprentices, along with 75 university than high-volume manufacturing,” he says. students on internships. The company also takes good care of its employees. “Bosch invests an awful lot of resource and time in people development,” Arntzen observes.

“There are huge career opportunities once you are inside the company. We create an environment where people feel empowered to be innovative. We focus on health and wellbeing, as well.” 10 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

SPECIAL REPORT PROPERTY RISES UP THE COUNTY AGENDA

Property is becoming a big issue for Worcestershire. Attracting employers and workers to the county is all well and good, it turns out, but they need places to work and live. And the accommodation has to be fit for purpose.

According to the latest commercial His advice to most Worcestershire property market report from clients looking to move in a hurry Worcestershire consultants GJS Dillon, and in a short timeframe is simple: the county boasts one of the UK’s strongest go back to your landlord and try to and fastest-growing economies. Small extend your lease for a short period. and medium-sized enterprises (SMEs), That’s not a long-term solution, of in particular, are drawn to Worcestershire’s course, which is why GJS Dillon has led central location and lifestyle potential. moves to get the Worcestershire Local Enterprise Partnership (LEP) more engaged in developing commercial This is having a knock-on effect on property. commercial rents, though, which are increasing at a significantly faster rate Dillon himself chairs the than the national average. The county’s Worcestershire LEP’s SME business office market is experiencing 10% annual group, looking to help develop rental growth in comparison to average sites specifically suited to small, 0% growth across the country, GJS growing businesses. It’s not as Dillon notes in its 2018-19 report. easy as it sounds. Land for development in Worcestershire is often Unsurprisingly, commercial occupancy constrained by green belt, rates are high in Worcestershire. Only 3.4% and high-profile sites have of office space and 3.1% of commercial traditionally been set aside for property is vacant, says the report. “The residential property or big- problem with warehouses is frenetic,” says ticket commercial projects that John Dillon, GJS Dillon’s managing director. are suitable for large employers This is a problem for growing businesses but have little to offer the SME because most entrepreneurs do not think community. about premises until just a few months What the county needs right now before existing leases are up. That rarely is industrial space from 2,000 leaves enough time to find a suitable to 15,000 square feet, and office space, says Dillon. Ideally, companies properties from 1,500 to 5,000 should be thinking about new premises square feet. Dillon believes the key up to 18 months ahead of a move. is to make more use of motorway “Most companies want to expand, but junctions. you need a commercial property plan These locations are less desirable to go with that,” says Dillon. He often for residential development but says to clients: “If you have another 20 offer good transport connections employees, you’ve outgrown this property and potentially easier planning. and you have a problem.” BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 11

As a result, the SME business group is looking to develop land along all the major M5 and M42 junctions in the Most companies county. Time is of the essence, though. want to expand, Despite demand for space, development is sluggish because of high land values and rising construction costs, says but you need a Dillon. “You’ve got a perfect storm,” he says. commercial Dillon believes the public sector could break the impasse through joint property plan to ventures that can access preferential borrowing, tipping the economic go with that. balance of projects in favour of developers so that shovels will start JOHN DILLON hitting the earth. He’s working hard MANAGING DIRECTOR | GJS DILLON to get such schemes rolling, but it’s still early days. At least, though, “we’ve started those discussions, which weren’t there 12 months ago,” he says.

WORCESTERSHIRE BUSINESSES IN 2018

Figures provided by Worcestershire County Council Information, Analytics and Research Team.

Number Micro Small Medium Large Total of Staff (0–9) (10-49) (50–249) (250+) BROMSGROVE 9,190 835 120 15 10,155 MALVERN HILLS 4,100 475 75 10 4,655 REDDITCH 2,635 535 130 20 3,325 WORCESTER 3,150 625 165 15 3,965 WYCHAVON 6,240 785 165 15 7,200 WYRE FOREST 3,395 525 95 10 4,020 WORCESTERSHIRE 28,710 3,775 750 95 33,325 12 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

CORPORATE FINANCE AFH GOES SHOPPING

To say AFH Financial Group has been busy would be putting it mildly. In September 2019, the Bromsgrove-based advisory group finally called a halt to an acquisition spree that saw it picking up 50 companies in just five years. The final spate of corporate purchases Other large transactions followed a £20m conditional placing of over the period included convertible unsecured loan stock in July Ideagen’s £18m acquisition 2019. By September, it was picking up of Redland Business wealth management firms at a rate of Solutions in Bromsgrove and one a week. Sdiptech’s £10.6m purchase of Kidderminster-based RedSpeed Although further acquisitions are not International, which was twice out of the question, the company has said an entrant in our top 50. it will focus on organic revenue growth going forward. In the meantime, the These were two out of four deals company has racked up nine acquisitions within the typically active technology in the last year. and media sector. Ideagen, of Nottinghamshire, was drawn to This is down from 13 the year before, but Redland’s financial services regulatory it still puts AFH Financial Group eight and compliance software products while deals ahead of every other Worcestershire Sdiptech swooped on RedSpeed for its buyer. And there was plenty of mergers and digital traffic camera technology. Despite acquisitions (M&A) activity in the last year. this high-profile activity in technology, manufacturing was the most active The county saw 55 transactions overall, industry for M&A by a long way over with Worcestershire firms being bought the last 12 months. Roughly a third in 31 cases and doing the buying in 26 (a of the 31 companies purchased in couple of transactions involved companies the county were manufacturing and in the county buying others here). engineering businesses.

By far the largest declared transaction NUMBER OF DEALS BY SECTOR was the £160m investor-led buyout of social care provider Core Assets Group in 12 Bromsgrove, by the private equity firm 10 10 CapVest Partners. The deal saw CapVest taking a majority 8 share in Core Assets Group, which carries 6 out health and social care recruitment and 5 development training services, and the 4 4 3 3 existing management staying on to steer 2 2 2 the business. 1 1 0 Precision Engineering Manufacturing & & Leisure Retail Wholesale & Media Technology Services Professional Services Business & Social Care Healthcare Services Financial & Parts Automobiles Building Materials Constructive &

* number of deals from 1 September 2018 to 31 August 2019 BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 13

CORPORATE FINANCE DRIVING UP DEALS

Two purchases that were noteworthy for The retail, wholesale and leisure market in the whole of last year the brands involved were Bridgestone UK’s also saw brisk levels of corporate finance involving an overseas acquisition of local automotive component activity, with five deals registered in target. Foreign buyers, supplier ETB Tyres, one of our top 50 the last year. One of the more notable too, were in short companies in the last two years, and the transactions in this area was the acquisition supply over the investor-led buyout of iconic Malvern of West Midland Safari Park, in Bewdley, last year. Only five came forward over sports car maker Morgan Motor Co. by the French attraction operator Looping the period, with Group, for an undisclosed sum. Bridgestone was reported to have acquired one each from ETB, which also trades as Britannia Tyres, Elsewhere, top 50 regular Victoria plc Canada, France, in order to extend its retail reach in the (P16) picked up Iberoalcorense, a Spanish Italy, Sweden and UK. The purchase added 32 branches to tilemaker, as part of a longstanding push the United States. Bridgestone’s UK network. for acquisitions. That deal was the only one Within the county, the top location for company sales was CORPORATE ACQUISITIONS BY LOCATION Redditch, but not by a great margin.

7 6 6 5 5 5 5

3 2 2 2 2 2 1 1 1

0 Redditch Bromsgrove Malvern Worcester Droitwich Evesham Kidderminster Wythall Bewdley Stourport-on-Seven 14 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

ONE WORCESTERSHIRE MAKING WORCESTERSHIRE NUMBER ONE EXPERT VIEW

Worcestershire is promoting itself with a bold new approach, a new brand and an advertising campaign extolling the virtues of the county to outsiders.

It’s the first campaign of its kind, underscoring Worcestershire’s Beech admits there have been challenges in getting the potential as a destination for jobseekers, business leaders whole county to feel involved. “The biggest and investors. Along with the adverts, which are being shown in challenge was to develop an approach locations such as London and Birmingham, the Worcestershire that would get a following from all of initiative features a high-quality promotional video and an eye- our partners across the whole county catching logo and visual identity. and bring private and public sector organisations together,” Beech says. “We want graduates to consider Worcestershire as a place to begin their career, people that are looking to make a career “Every area in Worcestershire change to consider Worcestershire and new businesses to come is doing a lot of good work. to Worcestershire,” says Keith Beech from the Worcestershire We asked: ‘What do you need 1000 team, a network of organisations championing the county. to help you to promote our county?’” The initiative follows an audit carried out in 2018 with the Local Enterprise Partnership (LEP), which found that while there was plenty going on in Worcestershire to promote parts of the county there was little coordinated effort to get the message out about these activities.

KEITH BEECH WORCESTERSHIRE 1000 TEAM We want graduates to consider Worcestershire as a place to begin their career, people that are looking to make a career change to consider Worcestershire and new businesses to come to Worcestershire. BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 15

ONE WORCESTERSHIRE

The answer was up-to-date information The approach was unveiled at the annual LEP conference in and promotional materials to show November 2018 and the Worcestershire 1000 network was off Worcestershire to those who don’t launched in the Spring. A full programme of activity is planned to yet know it. promote Worcestershire as a place to work and to set up a business. So, each member of the Worcestershire Elsewhere, a Made in Worcestershire campaign is being planned. 1000 team is being given a customised And the opening of the Worcestershire Parkway Regional pack to help them promote the county Interchange railway station, which will open up the region to to contacts from elsewhere. further economic growth, will provide another opportunity for publicity across the UK. The aim is to sign up as many businesses and organisations as possible from At the same time, this new approach will aim to highlight how the across the county, with 300 already county is home to leading brands such as Halfords and Morgan on board as of September 2019. Cars, and host to key UK initiatives including the Worcestershire 5G Consortium. Beech admits there is a long way to go. Amongst those who have already signed up are Worcester Bosch, “We have only just begun but we have big ambitions and we Worcestershire County Cricket want to support Worcestershire’s economic growth,” he says. Club, Hewett Recruitment, Malvern “But to do that, we have to get on the map. If we’re not on the Panalytical and Heller Machine map, and people continue to choose elsewhere, then we simply Tools. A partnership of private won’t be successful.” and public sector organisations Ultimately, says Beech, this new approach stacks up because the from within Worcestershire county has plenty of appeal, boasting “quality jobs alongside has come together to drive excellent investment opportunities and the ability to achieve that the network forward. perfect work-life balance that we are all looking for,” he says. The LEP, the Worcestershire Ambassadors, Worcestershire County Council and North Worcestershire Economic To find out more and take part, visit Development and Regeneration are all behind this new approach www.oneworcestershire.com/join to raise the profile of the county.

We will support our tourism industry, but this isn’t a picture-postcard tourist campaign. This is for the whole of Worcestershire, and I’d encourage everyone to get involved. 16 THE WORCESTERSHIRE GROWTH REPORT 2019 | BDO LLP

PANEL TECH GEARS UP FOR GROWTH

In the development of the county’s local industrial strategy and vision for 2040, Worcestershire Local Enterprise Partnership (LEP) has found an overwhelming amount of evidence to show how technology is critical to the growth of business in the county.

Worcestershire LEP has already invested Meanwhile, while newly opened projects in technology-focused initiatives like the such as Heart of Worcestershire College’s Worcestershire 5G Testbed, as well as Duckworth Centre of Engineering are business launchpads BetaDen and the Kiln, helping companies to develop a more to help local entrepreneurs to innovate skilled and specialised workforce. and gain a competitive advantage in the “Worcestershire already benefits from national and international marketplace. high employment in high-technology The LEP says technology adoption is helping manufacturing,” says Gary Woodman, local businesses to improve productivity Worcestershire LEP’s Chief Executive. and create employment. In fact, early “We’re now in a position to help findings from Worcestershire’s 5G test businesses from all sectors to use bed have shown a 1% to 2% increase in technology to their advantage, productivity for businesses. whether it’s through innovations Worcestershire LEP is continuing to invest in the latest 5G technologies in local infrastructure and facilities to help or through tailored business boost businesses productivity even further. accelerator programmes like the BetaDen.” Major improvements to transport infrastructure through developments like Worcestershire Parkway Station and Kidderminster Railway Station are helping to make the county more physically connected than ever.

GARY WOODMAN CHIEF EXECUTIVE | WORCESTERSHIRE LEP Worcestershire already benefits from high employment in high-technology manufacturing. BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 17

TOP 50 THE TOP THREE

BARBERRY GROUP £41.5M AVERAGE GROWTH TURNOVER 94.86% Privately owned property development and investment company Barberry Group is so confident of growth that it is building a £9.8m warehouse in Northamptonshire as a speculative development. But with other recent projects including a £140m business park in Durham, it has reasons to be bold.

EXCOOL £17.9M AVERAGE GROWTH TURNOVER 56.91% Every time you fire up a digital device you are potentially boosting business for Excool, which makes cooling systems for data centres. Business at the company is brisk not just because of increasing amounts of data but also because its cooling systems are among the most efficient on the market.

TRANSCAL ENGINEERING £13.5M AVERAGE GROWTH TURNOVER 56.47% Transportation interiors manufacturer Transcal had to shut a factory in Shropshire two years ago but its recent growth shows trade at the Pershore HQ remains strong. Helping matters is the fact that the company serves a wide range of sectors, from automotive to aerospace. 18 THEp WORCESTERSHIRE 50 GROWTH REPORT 2019 | BDO LLP oTOP 50 t WORCESTERSHIRE’S TOP o w 50 FASTEST GROWERS e Here are the top 50 companies in the Worcestershire in terms of turnover growth over the v50i last three years. COMPANYe NAME v DISTRICT TURNOVER AVERAGE % SECTOR r £000 LAST GROWTH AVAIL. YR 1 BARBERRY GROUP LIMITED Bromsgrove 41,502 94.86% Real Estate and Construction 2 EXCOOL LIMITED Wychavon 17,902 56.91% Manufacturing and Precision Engineering 3 TRANSCAL ENGINEERING LIMITED Wychavon 13,492 56.47% Manufacturing and Precision Engineering 4 VALEO ENGINE COOLING UK LIMITED Redditch 33,419 52.26% Manufacturing and Precision Engineering 5 ASPENS-SERVICES LIMITED Wychavon 36,123 51.53% Retail (Including Motor), Wholesale and Leisure 6 ARYSTA LIFESCIENCE UK AND IRELAND LIMITED Wychavon 23,598 47.69% Manufacturing and Precision Engineering 7 PLACE PARTNERSHIP LIMITED Worcester City 22,253 46.80% Real Estate and Construction 8 MOBILITY GROUP TOPCO LIMITED Redditch 48,763 46.67% Retail (Including Motor), Wholesale and Leisure 9 AFH FINANCIAL GROUP PLC Bromsgrove 50,664 45.01% Financial Services 10 ARCTOS HOLDINGS LIMITED Wychavon 41,665 42.38% Transport and Logistics 11 VERSION 1 SOFTWARE UK LIMITED Redditch 33,469 41.17% Technology, Media and Telecoms 12 GKN FREIGHT SERVICES LIMITED Redditch 70,525 40.78% Transport and Logistics 13 TIGERTURF (UK) LIMITED Wychavon 23,918 37.62% Manufacturing and Precision Engineering 14 DRP HOLDINGS LIMITED Wychavon 30,796 36.75% Technology, Media and Telecoms 15 SARPSFOSS LIMITED Bromsgrove 13,022 36.45% Manufacturing and Precision Engineering 16 GREY TECHNOLOGY HOLDING LIMITED Worcester City 120,842 35.63% Manufacturing and Precision Engineering 17 SHANNONSIDE HOLDINGS LIMITED Redditch 32,187 35.58% Real Estate and Construction 18 AVL UK HOLDINGS LIMITED Wychavon 116,837 35.41% Manufacturing and Precision Engineering 19 SAMUEL TAYLOR GROUP LIMITED Redditch 21,595 31.91% Manufacturing and Precision Engineering 20 VICTORIA PLC Wyre Forest 424,800 29.03% Manufacturing and Precision Engineering 21 LIONCOURT HOMES LIMITED Worcester City 66,147 28.19% Real Estate and Construction 22 BENNIMAN LIMITED Bromsgrove 73,261 26.95% Real Estate and Construction 23 PEMBERSTONE VENTURES LIMITED Wychavon 44,406 26.27% Manufacturing and Precision Engineering 24 ETB TYRES LIMITED Worcester City 42,163 23.78% Retail (Including Motor), Wholesale and Leisure 25 CP FOODS (UK) LIMITED Wychavon 205,875 23.76% Retail (Including Motor), Wholesale and Leisure 26 MORTGAGE BRAIN HOLDINGS LIMITED Redditch 15,091 23.65% Financial Services 27 LIAISON FINANCIAL SERVICES LIMITED Redditch 21,600 23.48% Financial Services 28 FRESH INSURANCE SERVICES GROUP LIMITED Wychavon 16,915 22.66% Financial Services 29 HOB FARMS LIMITED Bromsgrove 24,185 22.24% Food and Agriculture 30 BARTON FIRTOP ENGINEERING CO LIMITED Worcester City 11,217 21.68% Manufacturing and Precision Engineering 31 EF WEAVING LIMITED Malvern Hills 17,542 21.00% Retail (Including Motor), Wholesale and Leisure 32 METRASENS LIMITED Wychavon 10,774 19.17% Manufacturing and Precision Engineering 33 FINE AGROCHEMICALS LIMITED Wychavon 21,711 18.85% Manufacturing and Precision Engineering 34 PRIMAFRUIT LIMITED Bromsgrove 133,294 18.72% Retail (Including Motor), Wholesale and Leisure 35 SOLID STATE PLC Wychavon 56,299 18.64% Retail (Including Motor), Wholesale and Leisure 36 RED STAR GROWERS LIMITED Wychavon 11,268 18.51% Food and Agriculture 37 RED DEER HERBS LIMITED Bromsgrove 11,268 23.75% Food and Agriculture 38 LAKE CHEMICALS AND MINERALS LIMITED Redditch 17,425 18.09% Retail (Including Motor), Wholesale and Leisure 39 UKF STAINLESS HOLDINGS LIMITED Bromsgrove 25,838 17.96% Retail (Including Motor), Wholesale and Leisure 40 NEOPERL UK LIMITED Malvern Hills 14,807 17.47% Manufacturing and Precision Engineering 41 MAINSTAY GROUP LIMITED Wychavon 20,128 17.07% Real Estate and Construction 42 WORKING ON WELLBEING LIMITED Redditch 27,737 16.90% Health and Social Care 43 KARNDEAN INTERNATIONAL LIMITED Wychavon 84,978 16.74% Retail (Including Motor), Wholesale and Leisure 44 HEARTBEAT HOLDINGS LIMITED Redditch 18,563 16.54% Real Estate and Construction 45 HELLER MACHINE TOOLS HOLDINGS LIMITED Bromsgrove 55,587 16.31% Manufacturing and Precision Engineering 46 JOHNSONS CARS LIMITED Redditch 432,442 16.03% Retail (Including Motor), Wholesale and Leisure 47 EUROFRESH EVESHAM LIMITED Wychavon 24,796 15.81% Retail (Including Motor), Wholesale and Leisure 48 LALLEMAND ANIMAL NUTRITION UK LIMITED Malvern Hills 18,945 15.56% Manufacturing and Precision Engineering 49 YAMAZAKI MAZAK UK LIMITED Worcester City 479,319 14.99% Manufacturing and Precision Engineering 50 TITAN EUROPE LIMITED Wyre Forest 368,675 14.87% Manufacturing and Precision Engineering BDO LLP | THE WORCESTERSHIRE GROWTH REPORT 2019 19

THE BDO TEAM THE BDO WORCESTERSHIRE TEAM

Our commitment to Worcestershire is reflected in the breadth and experience of our team and the fact that we work and live here. We pride ourselves in being able to offer all the ingredients for excellent client service with our resources in the county, while providing the regional, national and international support you would expect of a major global firm.

GARY ROUSE JOHN STEPHAN SAM LIFFORD Director Partner Director +44 (0)7976 198489 +44 (0)7979 706731 +44 (0)7800 682768 [email protected] [email protected] [email protected]

JOE NEWTON CLAIRE ROUND GRAHAM ELSWORTH Partner Director Partner +44 (0)7583 940026 +44 (0)7808 242922 +44 (0)7771 954698 [email protected] [email protected] [email protected]

SELECTING THE SAMPLE

The companies included in the Worcestershire We eliminated companies where there was less BDO has not carried out any verification work on Growth Report were selected by conducting an than three years’ worth of turnover data available the financial information in this report and gives initial search of FAME for companies with both or where there had been negative growth in any no opinion on the financial information. BDO a registered of office and trading address in the year. Depending on the accounts filed, some of makes no claims, promises or guarantees about Worcestershire postal areas (‘the region’). our figures will be based on consolidated accounts the accuracy, completeness or adequacy of the and some on entity-only accounts. contents of this report. We eliminated any companies that have a parent company, where there are consolidated financial In addition, some of the financial information No reliance should be placed on the information statements produced, also based in the region, so will be based on UK Generally Accepted contained in this report and, to the fullest that there is no duplication of data in our sample. Accounting Principles accounts and others will extent permitted by law, BDO does not accept We also eliminated companies that were judged be based on International Financial Reporting or assume any responsibility to anyone for the not to be trading or controlled within the region. Standards accounts. information contained in this report. The ‘current period’ financial information is based The financial information in this report has been BDO has made a number of judgements in on latest filed accounts available on FAME as at compiled exclusively from publicly available aggregating the information into a consistent 9 July 2019. To produce the financial information, information under the key assumptions and format. BDO does not, and cannot, warrant the we simply took the last three years’ worth of limitations outlined above. It has been designed completeness or accuracy of the adjustments turnover data and calculated a year-on-year solely to illustrate trends in the financial made during the aggregation. average growth, before calculating an overall performance of a representative sample of average growth rate. companies in the region.

SOURCES p3 https://www.theguardian.com/ p12-13 https://www.internationalinvestment. p12-13 https://www.automotivelogistics.media/ business/2019/sep/03/gkn-aerospace- net/news/4005083/uk-afh-acquires- bridgestone-buys-etb-to-extend-british- to-shed-1000-jobs-worldwide financial-advisory-firm-gbp retail-reach/21502.article p12-13 https://www.investmentweek.co.uk/ p12-13 https://citywire.co.uk/wealth- news/3078123/afh-seeks-gbp20m-fund- manager/news/afh-puts-brakes-on- acquisitions acquisitions-after-50-buys-in-five-year/ a1274465?ref=wealth-manager-new- latest-news-test1-list FOR MORE INFORMATION: This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only. This publication should not be used or relied upon to cover specific situations and you should not act, or refrain GARY ROUSE from acting, upon the information contained in this publication without obtaining +44 (0)7976 198489 specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents [email protected] do not accept or assume any responsibility or duty of care in respect of any use of or reliance on this publication, and will deny any liability for any loss arising from any action taken or not taken or decision made by anyone in reliance on this publication or any part of it. Any use of this publication or reliance on it for any purpose or in any context is therefore at your own risk, without any right of recourse against BDO LLP or any of its partners, employees or agents.

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