Challenging winter period impacts North West’s listed companies

Chris Robertson, Deloitte in the North West

The North West’s listed companies have witnessed a significant overall decline in their market capitalisations since the turn of the year, with total values falling eight per cent in the first quarter of 2018, according to Deloitte.

The business advisory firm’s latest North West Share Index reveals that the total market capitalisations of the region’s FTSE and AIM listed companies decreased from £45.9bn in Q4 2017 to £42.3bn in Q1 2018 – a total loss of £3.68bn. Only 17 of the 67 listed companies in the North West saw an increase in value, with Dechra Pharmaceuticals and On The Beach the best performers, adding £700m and £85m respectively.

These results are in contrast to those recorded over the same period last year. Listed businesses in the North West added £2.3bn to their value in Q1 2017, which stood at £41.6bn.

The manufacturing sector suffered the biggest downturn this quarter, with the total value of the 12 North West based firms in this space falling by 21 per cent. The retail sector, which accounts for 40 per cent of the overall value of the North West’s listed businesses, also slumped after a challenging Christmas period and Q1, with total values falling by £2.3bn to £16.9bn.

However, the North West’s performance in the last quarter was in-line with the national performance across the public markets. The FTSE All Share fell from 4,202.53 points to 3,894.17 by 30^th March – a 7.3 per cent decrease.

Chris Robertson, partner and head of plc activity at Deloitte in the North West, said: “These results highlight the challenging market conditions that businesses have faced this quarter. We’ve seen high-street sales fall to the lowest levels in years, partly due to the rise in popularity of online shopping as consumers search for bargains, but also partly due to squeezed household incomes. Although the manufacturing sector enjoyed a strong end to the year, it has also suffered a decline after production in January dropped to its lowest level since June, while prices have been on the rise.

“Despite these figures, the North West still has cause for optimism. After six consecutive quarters of growth, it is no surprise that the value of the region’s listed businesses dipped in Q1, in line with the national trend. Notwithstanding the most recent quarter‘s performance, the overall value of North West businesses remains ahead of the same period last year.”