Hot 100: Resilience counts in uncertain times

Things aren’t getting any easier for Lancashire businesses as they continue to grapple with the unwelcome pressures of increasing costs and heightened economic uncertainty.

See the full Hot 100 in the latest edition of Lancashire Business View

And that volatility is mirrored in this year’s Hot 100 figures, with the total revenues of its companies down from £2.1bn last year to just short of £2bn, while total profit before tax fell by seven per cent.

However, employment figures have only seen a slight drop of two per cent when compared with 2023 suggesting that businesses are still investing in their workforce.

This year’s much-anticipated list, highlighting the county’s most profitable SMEs, also contains a large number of new entries.

Six of last year’s listed businesses have been acquired, ten have grown too large for the Hot 100, while 29 have either dropped down the rankings or ceased filing profit and loss accounts altogether.

Dean Rodgers, accounts and advisory director at PM+M accountants, who once again compiled the Hot 100 list for us, says: “This indicates a level of volatility and market churn which can be attributed to the economic pressures and uncertainty companies are facing.

“However, it’s worth noting that 53 companies have maintained their presence in the list, demonstrating resilience and the ability to navigate the current economic landscape.”

The construction sector, which had a significant representation last year with 35 companies, saw a slight drop to 29 businesses.

Dean adds: “This reduction may suggest a slowdown in construction activities or increased challenges within the sector, such as supply chain disruptions, labour shortages, or rising material costs. However, the sector still plays a crucial role in the region’s economy.”

Businesses in the property, care homes, leisure and tourism, vehicle sales and repair sectors all show strongly in this year’s list.

Looking ahead to the second half of 2024, experts believe businesses in Lancashire are likely to continue facing challenges related to cost pressures and regulatory compliance.

However, Dean believes the resilience shown by the majority of the companies on the list provides a foundation for “cautious optimism”.

He adds: “Overall, businesses may need to adopt more strategic approaches to cost management and efficiency improvements to maintain profitability – innovation and adaptation to changing market conditions will be critical.

“Companies in sectors such as construction may need to explore new strategies to cope with specific industry challenges.

“Despite the challenges, there are positive signs on the horizon. Falling inflation and the anticipation of an interest rate reduction suggest potential improvements in the economic landscape.

“We are encouraged by the cautious optimism already evident amongst our clients and in the wider marketplace. This positive sentiment, coupled with a more optimistic market outlook, suggest a potentially interesting second half of the year for the economy and the businesses of Lancashire.”

Richard Slater, chairman of Lancashire Business View, says: “Once again our Hot 100 list provides a fascinating insight into the health of the county’s economy and the performance of our vitally important SMEs.

“They continue to face significant headwinds but despite uncertainty and volatility they still continue to deliver for their communities. Resilience is hard-wired into their DNA and they are rightly applauded for their efforts.”

See the full Hot 100 in the latest edition of Lancashire Business View