The value of the North West's listed businesses hit a record high of £57.2bn during the last quarter of 2019, adding £6.4bn to their total market capitalisation, Deloitte has reported.
It represents the second largest jump in value since the middle of 2015, after the £7.1bn rise in the first quarter of 2019.
The business advisory firm said on Tuesday that its North West Share Index shows the total value of the region’s businesses included in the FTSE 100, FTSE 250 and the FTSE Small-Cap indexes, and quoted on AIM.
Its latest findings show an increase in overall value of listed companies, from £50.8bn in quarter three 2019 to a current total of £57.2bn.
That's more than double the £27.6bn listed on London Stock Exchange in quarter two 2015, underlining the appetite from the public markets for high profile listings in this time.
In total, 46 of the 62 North West listed companies over the last quarter increased their overall value, delivering a 13% rise in overall share value- far higher than the national performance, with the FTSE All Share increasing by 0.21% over the same period.
The region’s listed technology businesses particularly flourished in quarter four, increasing their total value by 35%. GB Group plc, which is a global technology specialist in fraud, location and identity data intelligence, saw an increase in its value by 44%, while NCC Group plc which specialises in cyber security and risk mitigation, saw a 29% increase in its overall value.
The total value of technology businesses hit £2.2bn – an increase of £585m from quarter three 2019, Deloitte said.
Andy Westbrook, senior partner for Deloitte in the North West, said: “North West listed companies have seen a significant rise in overall value in quarter four which not only highlights the strength of certain sectors such as tech but also the confidence that businesses are feeling after a majority election."
He said the 13% rise showed the "strong performance of businesses throughout all sectors across the region and the importance of the economy outside of London".
North West listed retail firms also enjoyed another quarter of growth, adding 12% to their total value. Cheshire-based Pets at Home plc saw a 34% rise in its overall value following a focus on boosting services for pet owners, such as veterinary practices and grooming services.
Boohoo also enjoyed a 12% growth in total share value, increasing its value for a fourth consecutive quarter. That followed the announcement of a new deputy chairman following record revenues, reporting an overall revenue growth of 44% for the four months to December 31.
FTSE 350 and FTSE Small Cap constituents were responsible for the majority of the overall share value rise in the region, adding £4.46bn, while smaller AIM-quoted firms added £1.01bn in the fourth quarter of 2019.
Bod Buckby, head of UK Primary Markets – North, London Stock Exchange, said: “That the market cap of companies from the North West on our London markets has doubled over the last five years is a positive indicator of the health of businesses in the region and their appetite for access to public capital markets.
"These businesses continue to play a key role in driving jobs, innovation and growth in the UK economy. London Stock Exchange is dedicated to supporting North West businesses across all sectors and helping them access the long-term capital needed to achieve their potential.”
