2007-ProfitTrack100_178193

PROFIT TRACK

APRIL 22, 2007

Britain’s private

firms with the fastest

growing profits

In association with

PROFITTRACK

100

Fast Track is an Oxford-based research andevents company with ten years’ experienceof ranking Britain’s top-performing privatecompanies, and running invitation-onlydinners to bring together their owners tonetwork and meet our sponsors.fasttrack.co.uk

Part of the HBOS Group, Bank of ScotlandCorporate works with businesses of over£1m turnover across a full range ofbanking and finance areas. With more than300 years of experience of helpingbusinesses develop and grow, it has one ofthe most knowledgeable and experiencedteams in the industry, and a reputation forfinding solutions and getting deals done.bankofscotland.co.uk/corporate

Founded in 1975, Microsoft is theworldwide leader in software, services andsolutions that help people and businessesrealise their full potential.microsoft.com

The member firms of the PricewaterhouseCoopers network provide industry focusedassurance, tax and advisory services tobuild public trust and enhance value for itsclients and their stakeholders. More than140,000 people in 149 countries acrossour network work collaboratively usingconnected thinking to develop freshperspectives and practical advice.pwc.com/uk

UBS is one of the world’s leading providersof private banking services, and in the UKhas more than 250 client advisers whofocus on the needs of UK customers. UBSWealth Management has developed andimplemented many innovative wealthmanagement strategies for UKentrepreneurs.ubs.com/uk

L ike many of this year’s ProfitTrack 100 companies, Yeo Val-ley has evolved from humblebeginnings into a highly success-

ful, multi-million pound operation. Thecompany traces its roots to the 1970s,when Roger and Mary Mead made clot-ted cream to sell at their farm gate. Theleftover milk fetched a paltry price onthe open market, so they started experi-menting by turning the milk intoyoghurt. This was a painstaking proc-ess, which involved Roger putting a coatover his pyjamas several times a night tocheck the vats of culture. Since then, thecottage industry has metamorphosedinto a large-scale dairy company pro-ducing 2,000 tonnes of yoghurt a weekand employing more than 1,000 people.Its profits have grown 56% a year from£1.6m in 2002 to an annualised £6min 2005.Yeo Valley is one of 19 family-owned

firms in the eighth annual Sunday TimesPrice Waterhouse Coopers Profit Track100 league table, which ranks Britain’sprivate companies with the fastest-grow-ing profits. Over a third of the comp-anies are backed by private equity,compared with 19 on last year’s list.Recent deals include last month’s£360m tertiary buyout of the clothingretailer Fat Face (No49), backed byBridgepoint Capital, and the £250m buy-out of Drive Assist (No 87) in February,backed by Charterhouse.This year’s companies have achieved

remarkable increases in profit, varyingfrom an average of 147% to 43% a yearover three years. Together they employmore than 91,000 people and have gen-erated more than £1 billion in profits intheir latest financial year. Profits rangefrom £128m (Dyson, No 24) to £3m(Ceuta Healthcare, No50), with almosta third of the firms posting profitsgreater than £10m.Dyson’s success has parallels with the

Yeo Valley story. Like the Meads,founder Sir James Dyson tirelesslyexperimented with his product beforebusiness took off. The vacuum-cleanercompany is still owned by Dyson, whospent five years testing 5,000 prototypesbefore launching the firm in Japan. Thecompany has sold more than 10m vac-uum cleaners in the past three years.This year’s No1 spot goes to Virgin

Money, whose profits have rocketed147% a year to £9.1m. Part of Sir Rich-ard Branson’s Virgin empire, the com-pany offers a range of financial servicesfrom credit cards and Isas to pensionsand pet insurance. Branding third-partyproducts with its red and white logo hashelped to boost profits. Its credit card,

developed by MBNA, has more than amillion customers.Animated-film producer Aardman

(No45) has also proved a big hit withthe public. The Oscar-winning studio isfamous for such classics as Wallace &Gromit and the Creature Comforts series.Aardman released its first feature film,Chicken Run, in 2000, and it plans tomake more movies after signing a three-year deal with Sony last month. Profitshave climbed 63% a year to £6.8m.Inventing ingenious products is not

the only way to boost profits. In fact, tra-ditional industries such as steel produc-tion and housebuilding feature stronglyin the league table. This year’s list isdominated by 18 engineering firms,including metal recyclers and steel com-panies buoyed by industrialisationacross China and India and rising met-als prices. For example, Sheffield-based

Special Steel clinches second place inthe table with profits that have soared123% a year to £9m.A booming property market and the

government’s Decent Homes initiativehave helped to propel 16 constructioncompanies into the table. Keepmoat (No67) is one firm benefiting from govern-ment commitments to raise social hous-ing standards. The property group refur-bished 34,000 homes last year, helpingprofits grow 57% a year to £41.3m.Companies associated with the oil

and gas sector are also flourishing. Thiscategory includes First Oil (No 61),which secured profit margins of 46% onsales of £27.2m (see table below). Basedin Aberdeen, the firm produces 5,000barrels of oil a day for customers thatinclude BP and Shell, while Centricaand Total buy its gas. Its margins weresecond only to those of the spread-bet-

ting firm Spreadex (No 23), which postedmargins of 52% on sales of £12.3m.Given Britain’s twin passions of shop-

ping and eating, it is no surprise to seealmost a quarter of the table devotedto consumer goods or food and drink.Retailers range from the luxury jewellerMoussaieff (No 48), which owns theworld’s largest red diamond, to DCK(No75), which supplies cost-consciousteenage girls with jewellery throughconcession stores on the high street.There are 12 food and drink companiesin the listings, including the Italian cof-fee house chain Caffe Nero. The com-pany delisted from the stock market inFebruary and is one of seven public-to-private buyouts in the table.Expansion through acquisition is a

common theme in the league table, with42 companies growing through take-overs. A prime example is BarchesterHealthcare (No11), where profitsjumped 93% a year from £6.1m in 2002to £43.6m in 2005. The nursing-homeoperator has snapped up 20 companiesin the past four years, including the£525m takeover of Westminster Health-care in 2004.Many of this year’s firms have cut

costs or improved operating efficiencyto drive up profits. For example, frozen-food wholesaler Harry Yearsley (No60)uses web-based technology to monitorand track its goods. The system is com-patible with customers’ software, so thatproducts can be traced along the supplychain. On page 7, Matthew Bishop ofMicrosoft explores how technology en-ables staff to work more effectively.Several businesses in the league table

are capitalising on the rise in environ-mental awareness. Demand for energy-efficient homes has fuelled profits atinsulation specialists Superglass (No97)and Mark Group (No 43). Anotherexample is the environmental consul-tancy Entec (No 65), which advises ongreen issues ranging from tidal power towind farms. On page 4, Suzi Woolfsonof Price Waterhouse Coopers highlightssome of the eco-friendly strategiesadopted by this year’s companies.Smart financing can help to propel a

business forward, as Adrian Grace ofBank of Scotland Corporate discusseson page 5. On page 4, Frank Blin ofPrice Waterhouse Coopers debates themerits of private equity and looks atother exit strategies for company found-ers. On page 5, Giles Nicholas of UBSlooks at entrepreneurs who have spreadtheir risk by selling a minority stake intheir business to unlock some cash.One of the keys to long-term success

is the ability to sustain profit growth.On page 7, Hamish Stevenson and AliceJames of Fast Track highlight the fourcompanies that have appeared in ProfitTrack 100 for three years in a row.Achieving a rapid rise in profits is

no mean feat. Hoping to attain similarsuccess are our “Ones to Watch” com-panies, highlighted on page 17.This year’s Profit Track 100 have

devised many ways of boosting busi-ness, from pitching a product in agrowth market to cutting costs to driveup margins. But whatever their strate-gies, they all share one thing in com-mon: an ability to transform ideas intoimpressive profit growth.

THE SUNDAY TIMES PROFIT TRACK 100 3

Private equity rolls on 4

Grow by going green 4

Banking on relationships 5

Unlocking your wealth 5

Software empowers staff 7

Consistent performers 7

The league table 8 -9

Company profiles 10 -15

Ones to Watch 17

Published with The Sunday Timeson April 22, 2007

The Profit Track 100 is on theinternet at www.fasttrack.co.uk

FIRMS WITH BIGGEST PROFIT MARGINS*

Powered by Fat Face: the clothes retailer has sailed ahead with private equity

Winning ways topower up profitsFrom fashion and filmsto fuel and food, thisyear’s Profit Track 100have grown their profitsby using all sorts ofstrategies, reportsLindsay Uppadine

Rank Company Activity Margin, % Page

23 Spreadex Spread-betting operator 52.02 1161 First Oil Oil and gas producer 45.89 1340 BES Consulting Asbestos risk consultancy 41.76 1238 Castlebeck Care-home operator 38.87 1268 RP Valves Valve distributor 38.29 14

53 Mactaggart & Mickel Housebuilder 37.72 13

79 Moneysupermarket.com Financial website operator 34.43 14

15 Aquilaheywood Financial software developer 34.34 11

20 Duck and Cover Clothing Clothing manufacturer 30.85 11

16 4D Interactive Dating services provider 30.26 11* Operating profit and directors’ pay as a proportion of sales

We don’t need the latest ProfitTrack 100 research to tell usthat private equity has hitthe big time. With high-

street stalwarts such as Alliance Boots inplay, and price tags nudging £10 bil-lion, it is clear that the industry’s timehas come.It was only in 2004 that the private-

equity sector began to gain prominence.In 2006 it produced a record £44 billionof buyout deals in the UK.The explosion of private-equity activ-

ity is also evident in the mid-market, ascan be seen from the companies fea-tured in this year’s Profit Track 100league table. Some 36 of the companiesare backed by private equity; last yearthe figure was 19.The combination of private equity

and cheap debt has created favourableconditions for raising finance and mak-ing deals. It has also provided the op-portunity for entrepreneurs to unlocksome cash by selling all or part of theirbusinesses.A significant amount of money is chas-

ing a limited number of investment

opportunities, and the fact that private-equity houses typically buy investmentsfrom each other (so-called secondaryand tertiary deals) has driven up prices.This has clearly encouraged some entre-preneurs and company owners to thinkabout cashing in.Only last month, Bridgepoint Capital

saw off three competitors in an auctionfor the clothing retailer Fat Face (No49in the table). Expected to go for £300m,Bridgepoint’s winning bid was worth£360m. It is the third time Fat Face hasbeen bought. Private-equity house Isis

invested £3.5m for 40% of the sharesin 2000 and exited in April 2005, whenAdvent International paid a reported£100m for the same shares.The pace of buyout activity shows lit-

tle sign of slowing. This year JimmyChoo (No 98) was bought by the Ameri-can private-equity firm Towerbrook for£185m. Charterhouse backed a £250msecondary buyout of Drive Assist(No 87) from TA Associates in February.In the same month the coffee bar oper-ator Caffe Nero (No18) delisted fromthe stock market, with Paladin Capital

Group backing a deal that reportedly val-ued the business at £225m.With the benefit of private equity,

both Drive Assist and Fat Face havedelivered impressive profit growth.Drive Assist has created 600 jobs on theback of 48% annual profit growth, from£5.8m in 2003 to £18.7m in 2006. Inthe same period Fat Face created 700jobs and raised profits 62% a year from£3.4m in 2003 to £14.3m in 2006.These examples reflect private equity’srelentless focus on creating value and itsability to support growth.

But the boom will not go on for ever.The market will get tougher as eco-nomic conditions become less benign.Rising interest rates will put corporatecash flows and profits under pressure.There is no doubt that life may becomemore difficult for companies that havetaken on large amounts of debt. The riskprofile for some companies appears tohave significantly increased after theywere bought by private-equity houses.Of course, private equity is not the

only route by which entrepreneurs canraise finance or realise capital. Tradesales and stock-market flotations aretwo other options. It all depends onwhat the shareholders want. The style ofmanagement control and pace of expan-sion may mean that private equity is notalways the best route.For example, a stock-market float

brings a company a wide shareholderbase and the benefits of public-companyvisibility. It can provide the opportunityto develop institutional relationships,which can be important for longer-termgrowth. It may be that a company ismore suited to having public equitythan taking on more debt, as is oftendone under private-equity control.Many companies are still floating on

the stock market. The junior AlternativeInvestment Market (AIM) has exceededmost people’s expectations. More than1,600 companies have joined AIM sinceits launch, raising £25.4 billion from thefloats themselves and another £15.7 bil-lion in further funding.It is worth noting that private equity-

backed Virgin Active (No 6) is reportedto be planning a £1 billion flotation in18months, once the Holmes Place acqui-sition is fully bedded down. Some com-mentators are even expecting some pri-vate-equity firms to float, even thoughthey have made much of how burden-some life in the public sector can be.Blackstone, the American private-equitygiant that recently showed an interest intaking over Sainsbury, was the first toannounce that it is to sell £2 billion of itsown shares in a public offering.Flotation and private equity provide

different means for a company to bal-ance the competing interests of creatingprofits and reinvesting for futuregrowth, while also allowing the ownersto realise some wealth.Of course, not all companies will be

thinking about growth finance in thisway. The Profit Track 100 league tablefeatures some fine examples of comp-anies that have consistently deliveredoutstanding profit growth by using theirfounders’ own resources, short-termdebt or retained profits to fund theexpansion of their businesses. Othershave relied on long-term debt.Examples include Sir James Dyson,

who still owns 100% of the companythat bears his name. Dyson (No 24) hasdelivered bigger profits in one year,£128m in 2005, than any other ProfitTrack 100 company. Similarly, RemoDipre, founder and owner of builderGladedale (No 8) has pushed up profits96% a year over three years to £78m in2005, on the back of a booming housingmarket and a series of acquisitionsfinanced by debt. Impressively, this isthe third successive year that Gladedalehas featured on Profit Track 100.Price Waterhouse Coopers acknowl-

edges all the Profit Track 100 compa-nies for their record of creating profits,reinvesting and delivering outstandingand consistent growth.n Frank Blin, head of UK regions atPrice Waterhouse Coopers LLP, was talk-ing to Nicky Willmore

4 THE SUNDAY TIMES PROFIT TRACK 100

No company is an island. Asthis year’s Profit Track 100demonstrates, today’scompanies are increasingly

aware that they need to strike abalance between their economicinterests and the impact theiractivities have on the environmentand society.Their reasoning is not based

simply on fears for the future, but isrooted in hard economics. We haveseen how the reputation and profitsof food companies and retailerssuffer when they are perceived to failto respond to social andenvironmental concerns.Corporate social and environmental

policy statements and recyclingschemes are not the whole story,however. Tomorrow’s leaders will bethose companies that embed sustain-able practices in their businesses.Against this background, it isheartening to see that the ProfitTrack 100 contains companies thatare moving in this direction by,for example, minimising their impacton the environment.

The cost of waste-disposal makesrecyling and waste reduction obviousthings to do. The Glasgow construc-tion contractor CCG (No73) has foundan elegant way of cutting its costs bygenerating heat from its rubbish.CCG has built a headquarters witha biomass heating system that isfuelled by wood dust from its joineryoperations and crushed timber wastefrom its construction sites. Its profitshave grown 54% a year, from £1.8min 2003 to £6.6m in 2006.The Reading-based catering firm

Baxter Storey (No 84) has convertedrefrigerated delivery vans to run onrecycled cooking oil taken fromcustomers’ kitchens.It has made other small but

practical changes. Plastic cutlery hasbeen replaced with coated woodencutlery from sustainable forests, andcups are now made from cornstarch,

which biodegrades in six weeks. Thecompany’s head office has beenawarded official carbon-neutralaccreditation.Baxter Storey has gone one step

further and used its green credentialsto develop stronger relationshipswith its suppliers and win customers.It has set suppliers a target ofreducing packaging by 20% in twoyears, and helps them develop theirown performance indicators forpackaging and the number of foodmiles (the distance food travels fromfield to plate). Baxter Storey’s profitshave grown 49% a year over the pastthree years to £5.9m in 2006.The West Yorkshire company

Bayford (No100) is a carbon-intensive business. It owns the UKrights to the Gulf petrol-station brandand delivers fuel oil to businessesand private homes. As a result, it is

particularly conscious of the need tocut its impact on the environment.Bayford has introduced initiativesthat go beyond selling customersbiodiesel and cleaner-burningheating oils. It transports 80m litresof fuel oil a year by barge, from anoil refinery on the east coast up theHumber river to a terminal in Leeds.This saves 5,000 truck journeys.The company’s next project is to

reopen a terminal that is serviced bya railway, a move that could removeanother 1,000 truck journeys a year.Its profits have grown 43% a yearover three years to £3.5m in 2006.Companies can no longer afford to

ignore the challenges of poverty,climate change, resource depletion,globalisation and demographicchange. The Profit Track 100companies of 2020 will be the onesthat recognise and respond to theseissues, treating them not only as achallenge but also as an opportunity.n Suzi Woolfson, a partner at PriceWaterhouse Coopers LLP who workswith entrepreneurial firms, wastalking to Nicky Willmore

Private equity on a roll

Full speed ahead: Drive Assist’s founder Steve Binch has created 600 jobs on the back of 48% annual profit growth

Daniel Kennedy

Private equity’s time hascome but there areother ways to raisefinance or unlock cash,says Frank Blin of PriceWaterhouse Coopers

Green is the best way to growCompanies must embrace sustainable practices ifthey want to survive, says Suzi Woolfson of PwC

When the co-founders of CityInn launched their hotelbusiness in the mid 1990s,they sought finance from a

source that would not only provide busi-ness acumen but would also share theirpassion for creating an “all new-build”city-centre hotel brand focused on atten-tion to detail and customer service.“Although the market was very com-

petitive and times were pretty challeng-ing, Bank of Scotland Corporate knewour track record and believed in our con-cept from the outset,” says David Orr,chief executive of City Inn.Ten years on, City Inn has a success-

ful business, with hotels in Bristol, Bir-mingham, Glasgow and London.“Shared ambition for the business

underpinned our relationship from theoutset,” says Orr. “And the bank backedour vision of an innovative urban hotelgroup designed to succeed in a sectordominated by international chains.”Bank of Scotland Corporate backed

City Inn to the extent of £110m in 2000,investing in a joint venture that sits atNo3 in this year’s Profit Track 100, withprofits up 111% a year, from £681,000in 2003 to £6.4m in 2006. This successlooks set to continue as City Inn opensnew hotels in Manchester, London andAmsterdam.Paul Gregory, chief executive of

Wood Mackenzie, the energy and lifesciences research and consulting firm,endorses the benefits of having a long-term relationship with a bank.His company is No58 in this year’s

league table, with profit growth of 60%

a year, from an annualised £3.2m in2002 to £13m in 2005.“Business is about relationships and,

over the past six years we have built astrong relationship with Bank of Scot-land Corporate. The bank’s integrated-finance team backed Wood Mackenzie’s£26m buyout in December 2001 and itremains a shareholder, with its main rolenow as a lender, most recently leadingthe £130m refinancing late last year.”Bank of Scotland Corporate places

importance on the record of the manage-ment team. We look to back strongpeople with good business models.We have developed two products

that, we believe, distinguish us from ourrivals. One is our integrated-financeproduct, which provides equity, loan

stock, mezzanine and senior debt in con-junction with management, who hold asubstantial part of the equity. This isdesigned for businesses of all sizes.The second is our joint-venture prod-

uct, where we rely on “bricks and mor-tar” — commercial property, houses,hotels, licensed premises and nursinghomes. We usually go in on a 50/50basis with the management.In both instances we take a longer-

term view. We do not push for a quickexit, but let the management team setthe pace in determining the exit strategy.Remo Dipre, chairman of the house-

builder Gladedale, says: “Bank of Scot-land Corporate took a long-term view ofour potential in property development.”Dipre has a 30-year relationship with

the bank, and Gladedale, his latest vehi-cle, is No 8 in the league table, havinggrown profits 96% a year, from £10.4min 2002 to £77.8m in 2005.“The support from the bank has been

fantastic. They have provided acquisi-tion finance, plus working capital facili-ties and have been strong supporters ofour overall strategy,” he says.When Bank of Scotland Corporate

first supported Profit Track 100 in 2003we had six customers in the leaguetable. This year we have 23. Creatingsuch profitable businesses is proof thatour products, together with our commit-ment to building close working relation-ships, are helping to put companies onthe road to success.n Adrian Grace, managing director ofBank of Scotland Corporate, was talkingto Alistair McLean

Betfair, the online bookmaker,is one of several businessesin this year’s Profit Track 100whose owners have built up

huge value and chosen to realise someof it by selling part of the company tonew investors.Set up by Andrew Black and Edward

Wray in 1999, Betfair is listed at No 55,with profit growth of 61% a year, upfrom £8.3m in 2003 to £34.6m in 2006.This impressive performance in a

rapidly expanding sector made it anattractive proposition to buyers. Yetwhen Softbank, the Japanese technol-ogy group, acquired a 23% stake fora reported £355m last year, Black andWray resisted the temptation to realisethe fruits of their labour in one lucrativethrow of the dice. Instead, they soldonly 2% of their equity, netting eachabout £15m while retaining a combined25% stake.The founders remain involved. Wray

is now chairman, while Black is a boardmember with responsibility for productdevelopment.

A similar approach, balancing longer-term opportunities with short-term gain,appealed to David Vaughan of ParkResorts. With co-founders Alan Castle-dine and Robert Sewell he set up thecompany by buying 12 caravan parksfor £46m from Bourne Leisure in 2001,backed by Close Brothers PrivateEquity. Then in 2004 ABN Amrobacked a £165m secondary buyout andmerged Park Resorts with its GB Holi-days business to create Britain’s second-largest holiday caravan park business,with 35 sites.“After the hard work we had put in,

we wanted to realise some of the wealthcreated,” says Vaughan. “Our new inves-tors wanted us to continue — and so wedid. The founders took out a total of£18m and re-invested the rest. Weretained a 23% share of the businessand offered some of these shares to ourkey management team. All of thembought into the business.”The company has continued to per-

form well, with profit growth of 60% ayear, from £6.4m in 2003 to £26.6m in

2006, placing it at No 57 in the ProfitTrack 100.Just last month, Park Resorts was sold

again — to GI Partners, which bought itfor a reported £440m. As shareholders,Vaughan and his partners benefited butwill, again, continue to be involved withthe company.

All these entrepreneurs worked hardto build their businesses, and theyunderstand that taking out some wealththrough a partial sale can be an effectivemeans of spreading risk. It allows found-ers to realise a significant gain whilemaintaining their involvement. At thesame time, it refreshes the business by

introducing new vitality in the form ofadditional investment and staff moti-vated by share options.Several companies on the list, like

Park Resorts, recognise the value of hav-ing employees among their sharehold-ers. For example, 10% of Caffe Nero isowned by its staff since it was delisted inFebruary by Paladin Capital. The com-pany, at No 18 in the list, was foundedby Gerry Ford in 1997 and runs a chainof 300 coffee bars in the UK. It grew prof-its 77% a year to £9.1m in 2006.It is important, however, to appreciate

that good quality, impartial advice isessential to any entrepreneur who isthinking of diluting his holding, as thedynamics of the business are going tochange. His control will be diminishedand some power will pass to incominginvestors.At UBS Wealth Management we have

developed a range of services to supportand advise business owners on how tobest realise their wealth. This includesidentifying the most cost-effective wayof extracting value, providing tax andinvestment structures, and offeringlong-term assistance to ensure growthof the wealth created by the partial sale.Entrepreneurs create wealth. We canhelp manage it.n Giles Nicholas, managing director atUBS Wealth Management in London,was talking to Alistair McLean


Giles Nicholas of UBS reports on theentrepreneurs who extracted somecash by selling part of their company

Creating a new chain of hotels: David Orr, chief executive of City Inn

Trusting relationshipsare key to success

Adrian Grace of Bankof Scotland Corporatereports on the valueof a bank that takesthe longer-term view

Coffee boost: founder Gerry Ford has given Caffe Nero staff a 10% stake

Spread your bets when unlocking wealth

6 APRIL 22, 2007 . THE SUNDAY TIMES


I t is no small feat to keepprofits growing at more than40% a year over three years.Yet each of the 100 companies

in this year’s Profit Track 100 hasachieved just that. Three have wonan even more impressive accolade— a place on the league table forthree years in a row. Keepmoat,a homebuilding company, hasgone one better — it is celebratinga fourth year in the top 100 (seetable below).Community regeneration has

been the key to the company’ssuccess. Family-owned since itsbeginnings in 1932, Keepmoatbuilds and refurbishes councilaccommodation and constructsaffordable housing. Chiefexecutive David Blunt says thegovernment’s drive to improvesocial housing has been a boon.The builder has won contractsfrom local authorities and housingassociations alike, putting up morethan 35,000 homes last year.As a result its profits have surged57% a year from £10.7m in 2003to £41.3m in 2006, placing thecompany at No 67 in the leaguetable.Since Profit Track 100’s launch

in 2000, 589 different companieshave featured in the league tables.At least 11 have floated and 72are known to have been acquired.Just 18 have ceased trading. Thisyear’s list includes 68 newcompanies, 28 that appeared lastyear, and four that appeared inearlier years.Another exceptional performer is

Gladedale, making an appearancefor three years in a row. Thiscompany is owned and run by itsfounder, serial entrepreneur RemoDipre, whose other successesinclude Fairbriar Homes, which hefloated in 1995, and lighting firmHawthorn Leslie. Gladedalespecialises in the redevelopment ofbrownfield sites, and owes muchof its profit growth to an ambitiousprogramme of acquisitions,

including County andMetropolitan, bought for £72m in2005. The takeovers have alsoexpanded Gladedale’s geographicreach, opening up businessopportunities in new regions of thecountry. A booming housingmarket has also helped fuel a 96%a year surge in profits from£10.4m in 2002 to £77.8m in2005, putting the firm at No8.Also appearing for the third year

in a row is family-owned BritishSeafood, which keeps foodprocessors, wholesalers andcaterers supplied with fish andshellfish. Managing director andfounder Mark Holyoake said thefirm had boosted business andprofitability by being among thefirst seafood suppliers to shiftsourcing and processing to Asia tohone its competitive edge.Undercutting the competition inEurope has brought in newcustomers and higher margins. A47%-a-year jump in profits froman annualised £3.7m in 2002 to£11.9m in 2005 has put thecompany at No 89 in the table.Malthurst is the final company

to merit a third consecutiveshowing in the league table. Thepetrol forecourt operator, one oftwo fuel empires run by GrahamPeacock, Susan Tobbell and BrianThompson, has raised its profitsand sales through acquisitions.Snapping up stations from rivalshas brought the total undermanagement to 155, and theresulting economies of scale havealso improved margins. Profitshave jumped 68% a year from£2.5m in 2003 to £11.8m in 2006,placing Malthurst at No 34.It is always a challenge to

maintain profit growth at such arapid pace. It will be interesting tosee if these four make areappearance next year, and whowill follow in their footsteps.n Hamish Stevenson is founderand compiler of Profit Track 100.Alice James is research manager

Companies thatkeep their profitsracing ahead

FIRMS THAT HAVE APPEARED THREE TIMES

When Dyson, No 24 in theProfit Track 100, introducedits new repair managementsystem, customers immedi-

ately benefited from a better servicefrom the company’s 161 field engineers.This is one of many innovations thathave helped the vacuum-cleaner makerachieve the highest profits in the leaguetable, growing 73% a year over the pastthree years to reach £128m.Dyson engineers were able to ditch

the paper forms they took from job tojob, and no longer had to transfer detailsto computers every evening. This time-consuming process introduced errors,and call-centre staff spent hours relay-ing job changes and cancellations.“Our methods were inefficient,” says

Malcolm Hird, Dyson’s field servicemanager. “We needed a mobile solutionthat could eliminate paperwork and helpour engineers work more effectively.”The systemworks withMicrosoft Win-

dowsMobile software and runs on hand-held computers that connect to Dyson’shead office. Now the engineers can seetheir schedules at any time and inputinformation into the device at each job.A built-in scanner logs the serial num-

bers of appliances and replacementparts, automatically ordering the rightone. This saves each engineer at least anhour a day, and ensures they can fix thevacuum cleaners on their first visit.We at Microsoft think companies

such as Dyson excel when they givestaff the tools to improve their business.Managers need to simplify how peoplework with colleagues, suppliers and cus-tomers. We believe that new softwaresuch as Vista, Sharepoint and the Office2007 suite can do just that.Halcrow, No 32 in the Profit Track

100, is facing up to global challenges.This large engineering consultant,responsible for projects such as the

Channel tunnel and the Crossrail linkunder London, needed an efficientmethod for collaborating across 105countries and sharing the vast reposi-tory of knowledge and experience of its4,500 employees.Information is key to accomplishing

huge and complex feats of engineering,so last year Halcrow’s knowledge man-ager Nicky Iddon set up a skills data-base and a knowledge-sharing intranetbased on Microsoft’s .NET framework.This enables staff to find and share

know-how and collaborate on projects.Each of Halcrow’s 40main areas of activ-ity has a website where people shareinformation on best practice, health andsafety, innovation, training, or contrib-ute to discussion sites.“Discussions are buzzing,” says Iddon.

“It is vital that knowledge is shared, notjust around the office, but between allstaff, wherever they are in the world.”To enable project managers to find the

right specialist for each job, staff fill in an

online self-assessment, rating themselvesfrom basic to expert in 3,000 skills. “Ifproject managers want someone withexpertise in 3D coastal modelling, whocan scuba dive and speak Italian, theycan find that person,” says Iddon.Microsoft research shows that the

number of decisions a worker needs tomake has tripled in the past five years.Ceuta Healthcare (No 50) knows that

up-to-date market intelligence is crucialto making astute decisions in the fast-moving retail sector. It is a sales andmar-keting organisation for healthcare com-panies such as Glaxo and Unilever, sell-ing their brands and its own productsinto supermarkets and pharmacies.A new customer relationship manage-

ment system called Fieldstrike, based onMicrosoft .NET, has revolutionised lifefor Ceuta’s sales staff. The system en-ables sales staff to show pharmacistsmarketing and product-safety presenta-tions and, when orders are placed, Field-strike sends them to Ceuta’s wholesal-ers. It can also capture data from tills inshops to track sales and stock levels.IT helps workers access the informa-

tion they need, and to discover patternsthat give them the insight to make gooddecisions quickly. Microsoft believesthat people are a business’s most impor-tant asset. Our software is capable ofamplifying the impact they have on thebusiness, as it has done for companiesin the Profit Track 100.People are as important as technol-

ogy, says Microsoft’s chief executiveSteve Ballmer. A system for customerrelationship management is great forstoring data but it can’t close a sale. Withthe right technology people have accessto data and the tools they need to get suc-cessful business outcomes.n Matthew Bishop, business and market-ing officer at Microsoft UK, was talkingto Kaye Johnson

Delivering the right tools: Sir James Dyson’s relentless quest for innovation has raised his firm’s profits to £128m

Four firms have appeared in Profit Track 100at least three times in succession,write Hamish Stevenson and Alice James

Rank 2004 -7 % profit07 06 05 04 Company Activity growth* Page

67 29 45 60 Keepmoat Housebuilder 56.79 14

8 16 42 Gladedale Housebuilder 95.85 10

34 47 43 Malthurst Petrol stationoperator 67.98 12

89 63 17 British Seafood Seafood wholesaler 46.89 15

* Compound annual growth rate (CAGR) between 2002 and 2005 or between 2003 and2006

Use software toempower staff

Matthew Bishop ofMicrosoft says IT canhelp firms to get morefrom their greatestasset — their people

RULES OF ENGAGEMENTTHE annual Profit Track 100 league table, now in its eighth year, ranksBritain’s private companies by average profit growth over the last threeyears of available audited accounts.Criteria: Companies had to be registered in the UK, independent, andunquoted. Profits are defined as operating profit with directors’ pay addedback. Operating profit consists of a company’s profit before taxation,interest, dividends and exceptional items. Directors’ pay was added backbecause research shows that as much as 70% of profits are removed from

private businesses each year in the form of directors’ remuneration.Profit growth was measured by average compound annual growth rate

(CAGR) over three years. Companies whose latest audited accounts had a2006 year-end had their profit growth measured from 2003 to 2006;those whose latest filed accounts had a 2005 year-end had it measuredfrom 2002 to 2005.

Profits had to exceed £500,000 in the base year and £3m in the latestaudited accounts. Companies had to show an increase in profits in theirlatest year. A minimum of 25 weeks’ trading in the base and latest yearswas required. For financial years with fewer or more than 52 weeks,

the figures were annualised on a simple pro rata basis.Data collection: Companies were identified in three ways. Somenominated themselves or were put forward by advisers. Others werediscovered by researching accounts filed at Companies House and figuresprovided by Bureau van Dijk’s Fame. Significant web research was alsoconducted. Shortlisted companies were interviewed by phone, and thevast majority were visited for further research.Corporate structure: Companies had to be independent, becausesubsidiaries could receive funding from their parents. Firms qualified ifthey had grown by acquisition but were disqualified if their growth


* Annualised figure † Unaudited accounts

1 Virgin Money Financial services provider Norwich 147.00% 9,117 605 258,221 371 1995 Manages £2.6billion of savings and investments for customers 10

2 Special Steel Steel processor Sheffield 123.15% 8,979 808 30,120 154 1925 Treats more than 1,000 tonnes of steel each week 10

3 City Inn Hotel chain operator Central London 111.18% 6,410 681 32,096 485 1995 Is building a £100m 550-bed hotel in central Amsterdam 10

4 92 ABS Industrial Resources Metal processor and supplier South Yorkshire 104.94% 8,159 948 83,230 128 1988 Supplies raw materials for high-tech alloys used in the aerospace industry 10

5 54 McCann Homes Housebuilder Milton Keynes 103.45% 7,154 850 48,649 87 1975 Builds eco-friendly social housing in partnership with local authorities 10

6 15 Virgin Active Health club operator Milton Keynes 98.38% 29,797 *3,817 154,378 4,084 1999 Says its 165 clubs have more than 900,000 members worldwide 10

7 Caledonian Alloys Metal recycler West Lothian 96.87% 9,195 1,205 53,591 209 1996 Supplies the aircraft industry from 10 processing facilities around the world 10

8 16 Gladedale Housebuilder Southwest London 95.85% 77,849 10,363 474,879 924 1992 Redeveloping Edinburgh’s Royal Infirmary into homes, offices and restaurants 10

9 Pentland Group Sportswear brand manager Central London 94.71% 31,986 4,333 735,300 12,018 1932 Owns brands such as Red or Dead, Speedo and Berghaus 10

10 37 ESRI UK Software developer Aylesbury 93.29% 6,410 888 64,036 426 1993 Remapped the tsunami disaster areas to help charities deliver aid 10

11 70 Barchester Healthcare Nursing home operator West London 93.01% 43,614 6,066 289,172 12,556 1993 Says its new Irish care home will feature a bistro, a hairdresser and a chapel 10

12 ICS Triplex Control systems provider Essex 91.81% 4,446 630 58,339 417 1966 Supplies safety systems for oil rigs and power stations 11

13 Ping Europe Golf club manufacturer Lincolnshire 90.34% 3,847 558 34,800 185 1973 Makes more than a million types of customised golf clubs 11

14 Hothi Cash & Carry Drinks wholesaler Northwest London 85.77% 3,244 506 100,570 39 1985 Unusual imported drinks such as Bombay Pilsner have boosted profits 11

15 Aquilaheywood Financial software developer Surrey 85.56% 10,964 1,716 31,929 224 1998 Provides software for nearly half the nation’s 100 largest pension schemes 11

16 4D Interactive Dating services provider Southwest London 85.18% 5,446 858 17,998 69 1994 Claims to connect more than 200m voice minutes a year 11

17 H&B Foods Food wholesaler South London 79.99% 3,149 540 36,769 223 2003 Sells 8m blocks of farmhouse cheese a year 11

18 Caffe Nero Coffee house operator Central London 77.45% 9,110 1,630 90,689 1,969 1997 Owns 299 Italian-style coffee houses across Britain 11

19 Beal Holdings Housebuilder Hull 77.40% 6,742 1,208 24,990 82 1968 Beal family boasts seven generations of entrepreneurial builders 11

20 Duck and Cover Clothing Clothing manufacturer Northwest London 76.86% 3,657 661 11,852 22 1996 X Factor’s Leona Lewis sang her way to victory in Duck and Cover jeans 11

21 Mottram Group Metal recycler Cheshire 76.44% 6,114 1,113 58,782 161 1973 Has recycled drinks cans into metal used in Rolls-Royce cars 11

22 Fairline Boats Yacht builder Peterborough 76.04% 5,472 1,003 95,367 1,130 1968 Has built more than 11,000 boats since it was founded 40 years ago 11

23 34 Spreadex Spread betting operator Bedfordshire 75.82% 6,375 1,173 12,255 64 1999 Average bet size has rocketed more than 20-fold to £300 since 2001 11

24 35 Dyson Vacuum cleaner maker Wiltshire 73.32% 128,107 24,605 470,410 1,679 1993 Claims one in three British households now owns a Dyson 11

25 Cumbrian Seafoods Seafood wholesaler Cumbria 73.24% 6,338 1,219 116,171 596 1997 Supplies seafood for Tesco’s Finest and Morrisons’ Eat Smart brands 11

26 Wordsworth Holdings Machinery manufacturer Lincolnshire 71.48% 3,083 611 33,178 350 1988 Makes everything from tipper trailers to prison furniture 11

27 Graig Shipping Group Ship manager and owner Cardiff 70.11% 4,445 903 22,453 90 1919 Commissioned the largest ship ever built in Vietnam 11

28 RMJM Architect and engineer Edinburgh 70.00% 3,142 *640 34,358 596 1956 Won the 2005 Stirling Prize for architecture for the Scottish Parliament building 11

29 Stan James Bookmaker Oxfordshire 69.88% 5,480 1,118 283,514 181 1986 Claims to process half a million betting slips a month 11

30 Barrett Design & Build Steelwork subcontractor Bradford 69.73% 3,501 716 25,363 97 1992 Made the steel frames for Leeds Bradford Airport’s new terminal 12

31 BE Wedge Holdings Galvaniser West Midlands 69.30% 7,051 1,453 75,213 940 1855 Galvanised parts for the Pepsi Max rollercoaster in Blackpool 12

32 Halcrow Engineering consultancy West London 69.24% 13,855 2,858 280,548 4,291 1868 Is helping to plan the £10billion Crossrail link under central London 12

33 UKIP Media & Events Magazine publisher Surrey 68.73% 4,106 855 17,860 118 1991 Promotes its niche magazines via exhibitions across three continents 12

34 47 Malthurst Petrol station operator Essex 67.98% 11,810 2,492 498,193 67 1997 Runs 155 petrol stations from Aberdeen to Plymouth 12

35 Southdale Homes Housebuilder Halifax 66.90% 3,668 789 39,061 110 1987 Has won three regeneration awards for its biggest housebuilding project 12

36 Care Principles Mental healthcare provider Newmarket 66.16% *8,661 1,888 63,020 1,333 1997 Its 1,500 staff care for patients with challenging behaviour 12

37 Titan Airways Airline Stansted Airport 65.76% 6,526 1,433 41,041 177 1988 Operates 13 planes carrying VIPs by day and mail by night 12

38 Castlebeck Care home operator Darlington 65.61% 9,854 2,169 25,350 483 1987 Runs 17 hospitals and treatment centres for adults with learning disabilities 12

39 IDIS Pharmaceuticals supplier Surrey 65.45% 4,438 980 29,142 81 1987 Sources 20 new medicines a day from all parts of the world 12

40 BES Consulting Asbestos risk consultancy Huddersfield 64.87% 3,640 812 8,715 181 1997 Manages asbestos data for mor e than 140,000 British properties 12

41 41 Azzurri Communications Telecoms services provider Newbury 64.72% 13,354 2,988 101,010 723 2000 Has made 16 acquisitions in the past six years 12

42 18 Ossian Retail Group Clothing retailer Glasgow 64.65% 6,000 1,344 124,438 2,453 1979 Based in Scotland, it is now expanding its two store chains southward 12

43 Mark Group Insulation contractor Leicester 64.09% *4,670 1,057 36,097 491 1974 Says it has insulated more than a million British homes 12

44 Incisive Media Magazine publisher Central London 64.02% 13,838 3,136 57,456 470 1994 Doubled turnover in just six weeks by snapping up rivals 12

45 Aardman Animated film producers Bristol 62.91% 6,810 1,575 45,988 195 1976 Won a fourth Oscar with Wallace & Gromit in The Curse of the Were-Rabbit 12

46 NP Aerospace Protective equipment maker Coventry 62.62% 5,380 1,251 26,356 172 1926 Keeps news crews safe in war zones with its protective materials 12

47 Argus Media Market data publisher Central London 62.33% 4,004 936 15,377 187 1970 Sells data on world energy prices to national governments 12

48 Moussaieff Luxury jeweller Central London 62.04% 11,390 2,677 54,441 25 1963 Owns the £3m Moussaieff Red, the world’s largest red diamond 12

49 95 Fat Face Clothing retailer Hampshire 61.69% 14,308 3,385 80,791 1,328 1988 Named after a Val d’Isere black ski run, Le Face 13

50 Ceuta Healthcare Sales and marketing agency Bournemouth 61.57% 3,006 713 13,548 141 1994 Puts Signal toothpaste, Pond’s cream and Brut onto supermarket shelves 13

Rank 2007

Rank 2006

2005-6 profit, £000

Activity

Location of H

Q

% annual profit

growth2002-3 profit,

£000

2005-6 sales, £

000

2005-6 staff

Founded

Page

Britain’s 100 fastest

was as a result of changes in accounting methods that led to their figuresbeing restated. Informal groups of companies that did not submitgroup-audited accounts to Companies House were excluded.Exclusions: Pure property developers and financial trading companies wereexcluded from the table because of their irregular trading patterns.

Any company with qualified accounts, serious disagreements with itsauditors, or a court judgment of more than £10,000 against it in the yearof its latest filed accounts was disqualified.

The sponsors do not endorse, guarantee or recommend investment inany of the companies. The table is based on historical profit performance.

Incomplete data: About 1.5m companies file accounts at CompaniesHouse, but about 70% file modified accounts, which do not show sales,profits or directors’ remuneration. Attempts were made to get full figuresfrom companies that produced abbreviated accounts but might qualify forthe league table. Companies that filed their accounts late or whoseaccounts were not processed by the research deadline of March 1, 2007were not considered.

Some exceptions were made to the qualification criteria set out above.The compiler’s decision is final and no correspondence will be entered into.Nominations for next year are welcome.

* Annualised figure † Unaudited accounts


Rank 2007

Rank 2006

2005-6 profit, £000

Activity

Location of H

Q

% annual profit

growth2002-3 profit,

£000

2005-6 sales, £

000

2005-6 staff

Founded

Page

profit-growth firms

www.bvdep.com

51 Firth Rixson Metal components manufacturer Sheffield 61.50% †55,045 *13,069 444,502 1,981 1850 Provides aerospace components for the likes of GE and Rolls-Royce 13

52 Tuffnells Parcels Express Parcel courier Sheffield 61.03% 4,810 1,152 78,187 1,695 1914 Founded in 1914 by Harold Tuffnell, who made deliveries with a horse and cart 13

53 Mactaggart & Mickel Housebuilder Glasgow 61.02% 14,252 3,414 37,787 268 1925 Has been building homes in Scotland for four generations 13

54 Risk Advisory Group Risk management consultancy Central London 60.75% *4,137 996 18,096 72 1997 Advises companies on risks from employee fraud to terrorism 13

55 4 Betfair Online bookmaker West London 60.70% 34,576 8,331 144,701 608 1999 Claims to process 6m bets a day for online gamblers 13

56 2 Sisters Food Group Poultry processor West Midlands 60.36% 21,266 5,157 315,345 2,540 1998 Processes free-range chicken at its state-of-the-art Scunthorpe plant 13

57 Park Resorts Caravan park operator Hemel Hempstead 60.35% 26,555 6,441 152,559 1,427 2001 Bought by GI Partners last month for a reported £440m 13

58 Wood Mackenzie Energy researcher Edinburgh 59.62% 13,021 *3,202 49,257 343 2001 Stockbroker turns into research expert for the energy and life science sectors 13

59 ACIS Transport software developer Buckinghamshire 58.58% 3,261 818 17,894 122 1995 Designs software that uses GPS to predict arrivals at bus stops 13

60 Harry Yearsley Food wholesaler Lancashire 58.29% 6,692 1,687 69,368 494 1955 Supplies frozen foods to Tesco, Sainsbury’s and the Prison Service 13

61 14 First Oil Oil and gas producer Aberdeen 58.25% 12,475 3,148 27,185 8 1998 Produces 5,000 barrels of oil a day for customers such as BP and Shell 13

62 RBG Energy services provider Aberdeen 57.82% 11,682 2,972 165,202 2,328 1975 Created by merging three companies with a joint value of £45m 13

63 Keltruck Truck dealer West Midlands 57.60% 3,441 879 94,378 470 1983 Claims to be Britain’s largest independent Scania dealer 13

64 Penta Consulting Recruitment agency South London 57.58% 3,245 829 45,633 72 1998 Deploys IT and telecoms staff across five continents 13

65 Entec Environmental consultancy Newcastle on Tyne 57.13% 5,854 1,509 45,070 633 1987 Has advised on 60 renewable energy projects, including wind and tidal power 13

66 Acteon Offshore services provider Norwich 56.89% *8,298 *2,149 67,139 417 1989 Develops hydraulic hammers designed to work 2km underwater 13

67 29 Keepmoat Housebuilder Doncaster 56.79% 41,255 10,703 468,737 2,550 1932 Sponsors Doncaster Rovers’ new 15,000-seat stadium next door to its offices 14

68 RP Valves Valve distributor Suffolk 56.60% 5,919 1,541 15,458 24 1994 Created on the back of a bright idea and a £6,000 redundancy cheque 14

69 Andrews Marbles & Tiles Tiling importer, contractor Leeds 56.42% 4,389 1,147 14,948 118 1886 Tiled the Millennium Grandstand at Newmarket racecourse 14

70 Yeo Valley Yoghurt, dairy maker Bristol 56.18% *6,027 1,582 120,317 973 1976 Sells 8m pots of yoghurt each week 14

71 John Lawrie Group Metal recycler and trader Aberdeen 56.10% 6,379 1,677 54,864 89 1930 Trades enough metal each year to build four QE2 cruise liners 14

72 Maximuscle Sports nutrition supplier Watford 55.55% 3,320 882 13,986 41 1995 Sells high protein sports foods to athletes and ‘body beautiful’ enthusiasts 14

73 CCG Building contractor Glasgow 54.26% 6,640 1,809 90,510 565 1976 Heats its own HQ with sawdust from joinery and construction operations 14

74 J&J Haslett Food wholesaler Belfast 53.97% 3,237 887 188,908 359 1854 Opened the first Mace store in Northern Ireland in 1960 14

75 80 DCK Jewellery retailer Essex 53.78% 17,233 4,739 128,652 1,683 1994 Operates more than 3,000 concessions in 22 countries 14

76 90 Ogilvie Group Building contractor Stirling 53.64% 7,057 1,946 176,635 453 1946 Set up by the Ogilvie family 60 years ago with just £100 14

77 61 Simons Group Building contractor Lincoln 53.27% 7,039 1,955 203,748 684 1944 Founded to repair RAF runways in the second world war 14

78 Senad Group Special education provider Derbyshire 52.88% †6,716 1,880 32,870 956 2003 Cares for children on behalf of 125 local authorities 14

79 Moneysupermarket.com Financial website operator Wales 51.94% 23,424 *6,678 68,036 306 1999 Claims it can save customers up to £7,000 on a new car 14

80 Nisbets Catering equipment supplier Bristol 51.06% 10,158 2,947 70,112 386 1983 Handles 3,000 orders a day for a broad range of catering equipment 14

81 Sorex Pest control manufacturer Cheshire 50.25% 6,811 2,008 49,069 192 1949 Sells its pest control products to customers in 45 countries 14

82 12 Robertson Group Building contractor Moray 50.02% 11,303 3,348 159,134 703 1966 Won an environmental award for building the Scottish Natural Heritage HQ 14

83 TJ Hughes Department store operator Liverpool 49.82% 11,988 3,565 214,528 1,725 1912 Will sell you a video recorder for £35 or a toaster for a tenner 14

84 62 Baxter Storey Contract caterer Reading 48.58% 5,885 1,794 122,902 3,675 2000 Its consultant chef John Campbell holds two Michelin stars 14

85 45 Regard Partnership Care home operator Southwest London 48.05% 5,465 1,684 32,444 1,115 1994 Runs 101 residential care homes for people with learning disabilities 14

86 Watson Petroleum Fuel distributor Wiltshire 48.03% 5,844 1,802 307,784 353 1957 Supplies fuel to customers from households to hen hatcheries 15

87 10 Drive Assist Car lessor Staffordshire 47.85% 18,699 5,786 85,664 1,102 1992 Recently bought by Charterhouse for a reported £250m 15

88 77 Allam Marine Electricity generator maker Hull 47.24% 3,580 1,122 40,001 27 1992 Its generators helped restore power across Asia after the 2005 tsunami 15

89 63 British Seafood Seafood wholesaler Central London 46.89% 11,868 *3,745 135,379 60 1992 Sources fish from 27 locations throughout Asia and eastern Europe 15

90 SPC Holdings Metal recycler and trader Norwich 46.46% 9,444 3,006 95,512 401 1984 Is one of Britain’s largest metal recyclers, with 13 sites nationwide 15

91 TJ Morris Discount retailer Liverpool 46.38% 22,801 7,270 273,404 2,732 1980 Sells brands from Lego to Vidal Sassoon at bargain prices 15

92 75 Hanbury Holdings Haulier Suffolk 46.15% 4,132 1,324 55,683 614 1999 Transports nearly a quarter of a million shipping containers a year 15

93 46 LFF Group Oil equipment supplier Essex 45.48% 5,762 1,871 82,504 132 1983 Opened offices in Azerbaijan and Kazakhstan to boost overseas business 15

94 Fircroft Recruitment agency Cheshire 45.26% 4,097 1,337 149,778 136 1971 Has 21 offices worldwide, including five branches in Kazakhstan 15

95 93 Reiss Clothing retailer Central London 44.42% 7,213 2,395 44,518 587 1975 Aspirational clothing retailer has plans for 250 stores worldwide 15

96 26 Unicom Telecoms services provider Manchester 44.36% 5,156 1,714 30,976 466 1998 Says it supplies more than 400m minutes of calls a year to 60,000 small firms 15

97 Superglass Insulation Insulation manufacturer Stirling 44.14% 8,374 2,796 38,047 213 1987 Makes insulation products using 80% recycled glass 15

98 Jimmy Choo Luxury accessories designer Central London 43.77% 3,674 1,236 36,943 72 1996 Plans to expand the brand beyond shoes and bags into perfume and eyewear 15

99 Retlan Manufacturing Trailer manufacturer Antrim 43.21% 8,282 2,820 92,254 511 1998 Recently signed a £13m deal to supply Eddie Stobart with 700 trailers 15

100 Bayford Fuel distributor West Yorkshire 43.07% 3,520 1,202 392,135 201 1918 Has introduced an eco-friendly heating oil with a scent of vanilla 15

7 CALEDONIAN ALLOYSMetal recycler 96.87%

THIS West Lothian company recyclesand processes nickel, cobalt andtitanium superalloy for the aerospaceindustry. Its work includes recyclingmetal for all of Rolls-Royce’s Britishsites. Chairman Hugh Stewart,managing director Ron McNab andDouglas Sked founded the companywith personal funds and an investmentfrom 3i in 1996, but have since boughtout the venture capitalist. Boosted by arecent revival in the aerospace marketand rising titanium prices, profits havegrown 97% a year from £1.2m in2003 to £9.2m in 2006.

8 GLADEDALEHousebuilder 95.85%

GLADEDALE has been boostingbusiness by snapping up regional

housebuilders. Under the serialentrepreneur Remo Dipre, sales havesoared to more than £700m, and thecompany says it is now the nation’slargest privately-owned housebuilder.In a £350m joint venture with Bank ofScotland, the Epsom-based firm iscurrently redeveloping Quartermile incentral Edinburgh, turning the formerRoyal Infirmary into a mixed-usedevelopment. Acquisitions and growthin the housing market have pushed upprofits 96% a year from £10.4m in2002 to £77.8m in 2005.

9 PENTLAND GROUPSportswear brand manager 94.71%

THIS London brand-managementcompany owns leading names in thesports, outdoor wear and fashionworld, such as Ellesse, Berghaus andRed or Dead. It has also boughtworldwide licences for Lacoste andTed Baker footwear. Formed in 1932

by Minnie and Berkie Rubin, Pentlandspent 30 years as a quoted companybut is once again in the hands of theRubin family under chairman StephenRubin. The 2005 acquisition of thequoted John David Group, owner ofthe JD sports chain, helped to boostPentland’s profits 95% a year from£4.3m in 2002 to £32m in 2005 andmore than doubled sales to £735m.

10 ESRI UKSoftware developer 93.29%

IF you get directions for a journeyfrom the AA website, ESRI’s softwaregenerates the route for you. Thecompany is a leader in the burgeoningmarket of geographic informationsoftware, and its programs layer datasuch as census, crime or planninginformation on top of maps. TheAylesbury firm counts three-quartersof local authorities as its clients, aswell as utility companies, the defencesector, and retailers planning where toput new stores. Led by managingdirector Richard Waite, ESRI hasgrown profits 93% a year from£888,000 in 2002 to £6.4m in 2005.

11 BARCHESTER HEALTHCARENursing home operator 93.01%

DISAPPOINTED by the standard ofcare available for an elderly relative,founder Mike Parsons set upBarchester Healthcare to fill the gap.Its retirement homes have proven ahit, with the firm growing to 172venues across Britain. This expansionhas been fuelled by 20 acquisitionsover the past four years, including the£525m takeover of WestminsterHealthcare in 2004. The London firmis now venturing into Ireland. Underthe management of Mike Parsons andDenis Brosnan and backed by Irishentrepreneurs John Magnier, JPMcManus and Dermot Desmond,profits have risen 93% a year from£6.1m in 2002 to £43.6m in 2005.

VIRGIN MONEY has attracted 2mcustomers, drawn to an expandingrange of financial services thatencompasses everything from creditcards to insurance against cancer.Initially it offered just savings andinvestment products, but Sir RichardBranson’s financial-services businesshas been branching out to become aone-stop shop for financial products,allowing consumers to source pensionsand even pet insurance from a singleplace.The company began life in 1995 as

Virgin Direct, a joint venture betweenBranson and Norwich Union, followedby HHG until 2004, when Virginbought out its Australian partner.Today it offers financial products inthree main areas — insurance, savingsand credit products. The success of thelatter arm has been a big driver ofgrowth, with more than a millionpeople carrying a Virgin credit card.The firm has also done well in theinvestment sector, with £2.6 billionunder management in the form of Isas,pensions and life insurance.

Virgin Money is no stranger toadvertising, spending about £30m ayear targeting internet-savvy 25 to45-year-olds with the promise of ajargon-free, consumer-friendly service.The Norwich-based company says itbenefits hugely from being part of theVirgin family, a group that nowincludes media, health clubs, travelservices, beauty products and wine.Virgin Money also attributes its

success to its partnering strategy.It has linked up with the likes ofMBNA to provide credit cards,Royal Bank of Scotland for insurance,and Scottish Widows for life andcancer products.Chief executive Mark Hodgkinson

and his team have grown profits 147%a year from £605,000 in 2002 to£9.1m in 2005.To keep the business expanding,

Virgin Money plans to continue todevelop new products — in particularit aims to re-enter the boomingmortgage market, where it hopes itsiconic red and white logo will soon becatching the attention of homeownersand first-time buyers alike.This year, Hodgkinson is handing

the reins to incoming chief executive,Jayne-Anne Gadhia, who first helpedset up the company 12 years ago.

2 SPECIAL STEELSteel processor 123.15%

FOUNDED by Bennett Beardshaw asa small steel producer and trader in1925, the Special Steel group hasdiversified into metal testing and steeltreatment as well as manufacturingsuperalloys for the energy andaerospace industries. It is one ofSheffield’s few remainingfamily-owned steel businesses, andits profits have rocketed 123% a yearfrom £808,000 in 2003 to £9m in2006. Chairman Alan Beardshaw isthe third generation of the family tocontrol the firm, and he hopes toextend that record by eventuallyhanding over to his sons.

3 CITY INNHotel chain operator 111.18%

SANDY ORR and Donald MacDonaldhave a distinguished pedigree in thehotel industry, notably as founderdirectors of MacDonald Hotels &Resorts. City Inn, their latest venture,established in 1995, builds and runsmodern, design-led hotels for businesstravellers. The group’s flagship hotel isin London’s Westminster, with sisterhotels in the heart of Bristol,Birmingham and Glasgow. City InnManchester is due to open its doorsnext month, and further expansion ispromised on the Continent and inAmerica. Chief executive David Orrhas grown profits 111% a year from£681,000 in 2003 to £6.4m in 2006.

4 ABS INDUSTRIAL RESOURCESMetal processor and supplier 104.94%

RADIATION SHIELDING forprotection during x-ray examinationsis just one application for the rawmaterials supplied by ABS IndustrialResources. The Yorkshire companysources specialist metals, includingnickel, cobalt and tungsten, which it

sells mainly to the oil and gas,aerospace and steel industries. Thebusiness operates across the globe,with 70% of customers overseas.Rising metal prices have increasedprofits by 105% a year from £948,000in 2002 to £8.2m in 2005. BrianBeckett and Kevin Sheehan retain amajority share of the company theyfounded in 1988.

5 McCANN HOMESHousebuilder 103.45%

JAMES McCANN now heads thecompany started by his father anduncle in the 1970s. He took over lastyear after a management buyoutbacked by Bank of Scotland Corporate.The business builds anything frombudget homes to five-bedroom housesin the triangle between north London,Milton Keynes and Cambridge.McCann reckons it has beenwell-placed to take advantage ofgrowth hot spots such as the A1corridor, which has helped to boostprofits 103% a year from £850,000 in2002 to £7.2m in 2005.

6 VIRGIN ACTIVEHealth club operator 98.38%

THIS COMPANY may be only eightyears old, but it says it is already thesecond-largest health-club operator inBritain. After its £210m acquisition of47 clubs from Holmes Place last year,the Milton Keynes firm now has 165gyms across Britain, Italy, Spain andSouth Africa. Its next opening will bethe flagship Twickenham club plannedas part of the rugby stadium’s newhotel complex. Managing directorMatthew Bucknall has kept the groupfighting fit, with profits rising 98%a year from an annualised £3.8m in2002 to £29.8m in 2005.Bridgepoint Capital and Permira,which had backed Holmes Place,took a stake in Virgin Active throughthe acquisition.


Making an aircraft turbine: Caledonian Alloys recycles the waste metal

1 VIRGIN MONEYFinancial services provider 147.00%

Plastic is fantastic for Sir Richard Branson: more than a million people now carry a Virgin credit card

Virgin puts itself right on the money

12 ICS TRIPLEXControl systems provider 91.81%

CUSTOMERS all over the world useICS Triplex to prevent accidents in theoil and gas, chemical and powersectors. The company designs, installsand maintains critical control systems,including emergency shutdownequipment and fire and gas detectiontechnology. Founded in 1966 and laterfloated, the company was taken privatein 2000 by Alchemy Partners. Sincethen, a string of acquisitions underchief executive Peter Mottershead andchairman David Rimmer has helped todrive up profits 92% a year from£630,000 in 2003 to £4.4m in 2006.

13 PING EUROPEGolf club manufacturer 90.34%

PING is the brainchild of KarstenSolheim, who founded the Americanfirm Ping Inc in the 1960s andexpanded into Europe a decade later.Both companies are owned by theSolheim family, but Ping Europe islegally independent of Ping Inc andpays royalties for use of the brand.The company makes customised clubsfor individual players, includingworld-class golfers Lee Westwood andMiguel Angel Jimenez. Its Ping Eye 2iron is one of the top-selling clubs ingolfing history, and the success of theG5 and G2 clubs has helped profitssoar 90% a year from £558,000 in2002 to £3.8m in 2005.

14 HOTHI CASH & CARRYDrinks wholesaler 85.77%

YOU will find more than 5,000products from candy to cava sparklingwine on the shelves of thisLondon-based wholesaler. Its specialityis unusual imported beers and spirits,distributed by its fleet of vehicles to50,000 customers all over the country.Managing director Prakash Thakrarhas overseen a jump in profits of 86%a year, from £506,000 in 2002 to£3.2m in 2005. The company recentlyconstructed a 50,000 sq ft warehousein Park Royal, north London, toprepare for its rebranding.

15 AQUILAHEYWOODFinancial software developer 85.56%

SOFTWARE produced byAquilaheywood is used to run thepensions of more than 7m people inBritain. The company’s pensionsadministration systems help to manage46 of the top 100 pension schemes,according to founders David Ackroydand Finlay Ross, and are used by 30%of FTSE 100 companies. Customersrange from public-sectoradministrators to blue-chip companies,such as British Airways, BP and ITV.Increasing government regulation hashelped to boost business, pushing upthe Surrey firm’s profits by 86% a yearfrom £1.7m in 2003 to £11m in 2006.

16 4D INTERACTIVEDating services provider 85.18%

THE quest for true love has turnedhigh-tech thanks to 4D Interactive,which runs dating services via voicemessaging. It also offers text, pictureand video communication using 3Gmobile internet, has its own Speakeasymatchmaking service, and runs twotelevision dating channels. Half of 4D’s

turnover comes from operating datingservices for other companies. Thefirm’s profits have risen 85% a yearfrom £858,000 in 2003 to £5.4m in2006. Founded and owned bychairman Chris Bradbury, the Londoncompany is expanding its text servicesto other English-speaking countriesand is launching a dating website laterthis year.

17 H&B FOODSFood wholesaler 79.99%

WENSLEYDALE, sage Derby, Cornishyarg, single or double Gloucester —whatever your taste in cheese, you willfind it at H&B Foods. Formed in 2003from the merger of two cheesewholesalers, Harvey & Brockless andthe Huge Cheese Company, H&B alsoprovides other speciality foods such asolives and gourmet chocolate tocaterers nationwide. Last year,Icelandic investor Sigurdur Sigurdsson

bought a majority share, appointingNick Martin as managing director.Profits have swelled 80% a year from£540,000 in 2003 to £3.1m in 2006,fuelled by cost savings from themerger and by the growing popularityof higher-quality food.

18 CAFFE NEROCoffee house operator 77.45%

INSPIRED by his favourite Europeanhaunts while writing his PhD, GerryFord set out to bring the continentalcoffee experience to Britain. Hefounded this coffee-house group in1997 and floated it on the LondonStock Exchange four years later.He then teamed up with Paladin,the venture-capital company he alsoco-founded, to buy it back in Februaryin a deal valuing the business at areported £225m. Ford hopes to takethe Caffe Nero brand to northernEurope and the Middle East,building on the allure of Italianespresso coffee and deli-style food.He is also looking to expand in Britainfrom 300 to 450 shops by 2010. Thecompany’s profits have grown 77%a year from £1.6m in 2003 to £9.1min 2006.

19 BEAL HOLDINGSHousebuilder 77.40%

FAMILY-RUN Beal Holdings hasgrown from building a house and twoshops in 1968 to completing 150homes every year. Founded bybrothers John and Raymond Beal andcurrently managed by John and hisson Richard, this Hull companyexpanded into Lincolnshire after its2003 acquisition of Eastman Securities.A booming regional house marketand new projects, such as its BurtonWaters marina development, havehelped boost profits 77% a year from£1.2m in 2002 to £6.7m in 2005.

20 DUCK AND COVER CLOTHINGClothing manufacturer 76.86%

WHEN Ashwin Shah founded Duckand Cover in 1996, he wanted tocreate urban clothing with a difference.

The fashion-buying public hasembraced the company’s alternative tobland mass-market streetwear, and itsproducts are now sold in shops suchas Republic, Envy, Fenwicks andHouse of Fraser. The introduction ofa womenswear line in 2004 hashelped the company’s profits soar 77%a year, from £661,000 in 2002 to£3.7m in 2005. Duck and Cover isnow planning to increase its presenceon the Continent.

21 MOTTRAM GROUPMetal recycler 76.44%

WHEN factories run by Nissan andHonda produce waste metal, they turnto the Mottram Group for help. Itsrecycling arm will take discardedaluminium, remove all the impuritiesand return it to the customer forfurther use. The Cheshire companyalso produces ferrous titanium for thesteel and welding industries. ChairmanPeter Nix joined Mottram in 1974,buying a 25% share for just £25. Thecompany’s profits have swelled 76% ayear from £1.1m in 2002 to £6.1m in2005, partly because investment innew technology has allowed moremetal to be recovered.

22 FAIRLINE BOATSYacht builder 76.04%

FAIRLINE has evolved from buildingsmall inland pleasure craft tobecoming a renowned maker ofocean-going luxury yachts. Thecompany specialises in boats between30ft and 85ft, building about 300 eachyear. Under chief executive DerekCarter, demand has flourished as thebusiness has expanded into newregions such as Asia and the MiddleEast. Fairline already has an 18-monthwaiting list for the new 55ft model itplans to launch in December. Profitsrose 76% a year from £1m in 2002 to£5.5m in 2005.

23 SPREADEXSpread betting operator 75.82%

IF you want to put a cool £500,000 onthe outcome of the FA Cup Final or

£20,000 a point on the movement ofthe FTSE 100 index, spread-bettingcompany Spreadex will take your bet.Accommodating big spenders hasbrought in higher revenue for theBedfordshire company, boostingprofits 76% a year from £1.2m in2003 to £6.4m in 2006. Founder andmanaging director Jonathan Hufford,a former City trader, recently launcheda website for sports wagers, and heplans to move into online financialgambling this year.

24 DYSONVacuum cleaner maker 73.32%

DRIVEN by the desire to find bettersolutions to everyday problems,Sir James Dyson invented a baglessvacuum cleaner that has effectivelyseen off most rivals. He started sellingcleaners based on his revolutionarycyclone technology in 1993 and by1997 was outselling Hoover andElectrolux put together. The Wiltshirecompany now claims to be the leadingbrand in Britain, America, Australia,New Zealand and western Europe.Global expansion has driven upprofits 73% a year from £24.6m in2002 to £128.1m in 2005.

Tasty business: H&B Foods directors Simon Yorke, Jonnie Archer and Nick Martin have pushed up profits to £3.1m


25 CUMBRIAN SEAFOODSSeafood wholesaler 73.24%

SET UP 10 years ago on the SolwayFirth, this company provides fresh fishand seafood to Tesco and Morrisons.Its products include reduced-fat prawncocktail and oat-coated mackerel, soldunder Morrisons’ Eat Smart label. Aswell as buying a number of companiesin Cumbria and Northumberland,founder and chairman Peter Vassallohas invested in an Icelandic cod andhaddock fishery. The company’sprofits have grown 73% a year from£1.2m in 2003 to £6.3m in 2006.

26 WORDSWORTH HOLDINGSMachinery manufacturer 71.48%

THIS Lincolnshire firm makeseverything from tipper trailers toprison security gates and furniture,and it counts prisons and the policeamong its customers. Founded byowner Duncan Wordsworth in 1988,the company has been on a shoppingspree in recent years, buying andturning around underperformingbusiness such as tipper-trailer makerCrane-Fruehauf and Aveling-Barford,which makes dumper trucks. Theseand other acquisitions helped profitssoar 71% a year from £611,000 in2002 to £3.1m in 2005.

27 GRAIG SHIPPING GROUPShip manager and owner 70.11%

FROM its base in Cardiff Bay, thisgroup’s reach extends across the globeto China, Vietnam and India. Thecompany is involved in all aspects ofshipping, from designing, financingand overseeing the building of vesselsto managing ships on behalf of others.It is also a shipowner itself. Underchief executive Hugh Williams,grandson of Idwal Williams, whofounded the company in 1919,profits have grown 70% a year from£903,000 in 2003 to £4.4m in 2006.

28 RMJMArchitect and engineer 70.00%

THIS Edinburgh firm of architects isrising rapidly as it reaps the benefitsof a number of high-profileinternational contracts. Recent winsinclude the main convention centre forthe Beijing Olympics and the £400mGazprom glass tower in St Petersburg.The company now employs 700people in offices scattered acrossEurope, the Middle East and Asia.Chief executive Peter Morrison, adirector since his family led a £1mbuy-in in 2002, took the top job in2005. Profits have grown 70% a yearfrom an annualised £640,000 in 2003to £3.1m in 2006.

29 STAN JAMESBookmaker 69.88%

BOOKIE Stan James has 20 bettingshops in the counties around its homein Oxfordshire, and it also offersonline and telephone gambling. Itsextensive advertising and sponsorshipof events such as the World Matchplaydarts tournaments and the Newmarket2000 Guineas have swelled the numberof punters to 50,000. Founded byStephen Fisher in 1986, Stan James isstill wholly owned by the Fisher family.Profits have climbed 70% a year from£1.1m in 2002 to £5.5m in 2005.

40 BES CONSULTINGAsbestos risk consultancy 64.87%

FROM its base in Huddersfield, thiscompany helps property owners andtenants to manage asbestos safely intheir buildings. BES performs some18,000 on-site inspections a year forclients that include Barclays, HBOSand Waitrose. It also tests samplesand supervises asbestos removal.Founded by chief executive SimonFarrar and his wife Sally Rhodes in1997, the company has boosted itsprofits 65% a year from £812,000 in2002 to £3.6m in 2005.

41 AZZURRI COMMUNICATIONSTelecoms services provider 64.72%

A FIFTH of FTSE 100 companies turnto Azzurri for telecoms services,including Tesco, HSBC, CadburySchweppes and BSkyB. Founder andchief executive Martin St Quinton hasbuilt up the company through 16acquisitions since its inception in2000, and he aims to triple turnover inthe next three years. Last year PPMCapital bought a majority stake in thecompany from founding investor 3ifor £182.5m. Profits grew 65% a yearfrom £3m in 2003 to £13.4m in 2006.

42 OSSIAN RETAIL GROUPClothing retailer 64.65%

THE Ossian Retail Group trades onthe high street under two fascias. Its69 Internaçionale outlets sell affordableyoung women’s fashions, whileAu Naturale sells homewares from 82shops. Ken Cairnduff founded thecompany in 1979. A managementbuyout last year put an estimated£30m in his pocket and handed thereins to chief executive Norrie Stewart.The Glasgow company plans to open40 stores over the next 18 months,expanding southwards. Profits haveswelled 65% a year from £1.3m in2003 to £6m in 2006.

43 MARK GROUPInsulation contractor 64.09%

MARK claims it is Britain’s biggestdomestic insulation company, doingwork on 3,000 properties every weekto keep out the cold. Founder JohnCottingham handed control to his sonLee in 2005 after more than threedecades in charge. Since then, anationwide expansion has grown thebusiness from four depots to 14.Customers range from homeowners tolocal councils and utility companies.Mark is also branching out intosmall-scale sustainable power projects,installing wind turbines, solar heatingand ground heat pumps. Profits grew64% a year from £1.1m in 2003 to anannualised £4.7m in 2006.

44 INCISIVE MEDIAMagazine publisher 64.02%

SINCE exiting the London StockExchange last year, Incisive Media hasbeen able to accelerate its expansion.

Backed by the private-equity groupApax, the London firm says it doubledsales in six weeks by acquiring MSMInternational and VNU BusinessPublications, where founder and chiefexecutive Tim Weller began his career.The company’s key publicationsinclude Investment Week, Risk andLegal Week. Profits surged 64% a yearfrom £3.1m in 2002 to £13.8m in2005, underpinned by strong growthin events and online publishing.

45 AARDMANAnimated film producer 62.91%

PETER LORD and David Sproxtonstarted this animation studio in aBristol back room in 1976. A slot onBBC TV’s Vision On provided thebreakthrough for them and, afterdirector Nick Park joined in 1985,the company found fame withOscar-winning Creature Comforts andWallace & Gromit. It screened its firstfeature film, Chicken Run, in 2000and more are on the way through anew partnership with Sony Pictures.Aardman also makes commercials andTV series, including Shaun the Sheep,which is showing on the BBC. Profitshave risen 63% a year from £1.6m in2002 to £6.8m in 2005.

46 NP AEROSPACEProtective equipment maker 62.62%

BBC news crews under fire in Iraq aregrateful for NP Aerospace’sbullet-resistant helmets, body armourand armoured vehicles. The companyalso safeguards the military, policeforces and aid agencies. Applicationsfor its advanced composite andmoulded materials include shields forhospital x-rays and strong, lightcomponents for planes and cars.Founded in 1926, NP Aerospace isowned by the Carlyle Group. Chiefexecutive Roger Medwell has boostedprofits 63% a year from £1.3m in2002 to £5.4m in 2005.

47 ARGUS MEDIAMarket data publisher 62.33%

THIS London company sells dailyprice information and analyticalreports on the international oil, gas,power, emissions and coal markets.Customers include multinationalcompanies such as Shell, BP, Totaland Exxon, as well as banks andgovernments. The business wasfounded in 1970 by Jan Nasmyth, aformer Treasury official, journalist andShell-Mex employee who also did astint at the United Nations in NewYork. Argus now has offices aroundthe globe from Houston to Tokyo.Profits have grown 62% a year from£936,000 in 2003 to £4m in 2006.

48 MOUSSAIEFFLuxury jeweller 62.04%

ALISA and Shlomo Moussaieff are thethird generation of the family to leadthis master jeweller. With Londonboutiques in Bond Street and the ParkLane Hilton and an outlet in Geneva,the firm caters to some of thewealthiest people in the world. Severalhave been customers for generations.The family claims it is descended fromGenghis Khan’s goldsmith and says itowns the Moussaieff Red, the world’slargest red diamond, worth £3m.Profits rose 62% a year from £2.7min 2003 to £11.4m in 2006.

30 BARRETT DESIGN & BUILDSteelwork subcontractor 69.73%

WHEN its parent company faced direstraits in 1992, brothers Richard andJames Barrett and business partnerPaul Chasney rescued Barrett Design& Build from receivership. Fastforward 15 years, and business isbooming for this Bradford steel framebuilder. Recent projects have includeddesigning the structure for the Ikeastore at Milton Keynes and a largeresidential development at DickensHeath, Solihull. Fuelled by carefulcost control and investment in newtechnologies, profits have risen 70%a year from £716,000 in 2003 to£3.5m in 2006.

31 BE WEDGE HOLDINGSGalvaniser 69.30%

THE largest galvaniser in Britain,BE Wedge’s techniques protect thePepsi Max rollercoaster in Blackpoolfrom salty sea air as well as the gatesat Ascot. Founded in the 1850s, thefirm galvanises steel and ironcomponents for buildings, crashbarriers, cars, phone masts andelectricity towers from its 15 plants inBritain. Expansion into America hashelped to boost profits 69% a yearfrom £1.5m in 2003 to £7.1m in 2006under owner Jeremy Woolridge.

32 HALCROWEngineering consultancy 69.24%

HALCROW is helping to plan one ofthe great engineering projects of ourage. The engineering consultancy ispart of the team designing the£10 billion Crossrail line, which willtunnel under the capital to link eastand west London. Halcrow’s previousachievements include the Chengdupanda park in China, flood alleviationin the Norfolk Broads and the£5 billion Channel rail link. It iscurrently designing the new towerblocks at Canary Wharf Riverside.Headed by chief executive PeterGammie, the London firm has pushedup its profits 69% a year from £2.9min 2002 to £13.9m in 2005.

33 UKIP MEDIA & EVENTSMagazine publisher 68.73%

UKIP’s business-to-business magazineshave circulations of between 12,000and 20,000, boosted by internationalexhibitions and conferences heldmainly in Germany, America and Asia.Its specialist publications focus ontransport and include Crash TestTechnology International andPassenger Terminal World. Previouslyknown as Autointermediates, theSurrey company rebranded itself afterselling off its aviation side in January.Under founder and chief executiveTony Robinson, profits have grown69% a year from £855,000 in 2002to £4.1m in 2005.

34 MALTHURSTPetrol station operator 67.98%

DRIVERS nationwide can top up theirtanks at 155 petrol stations run byMalthurst, the fuel company foundedby Graham Peacock, Susan Tobbelland Brian Thompson. The outlets arebranded with the names of the fuelsuppliers, which include leading oilcompanies such as BP and Shell.

Malthurst’s profits have jumped 68%a year from £2.5m in 2003 to £11.8min 2006, boosted by economies of scaleas the company buys and revampsforecourts. The founders are alsoshareholders in Pace Petroleum,a joint venture that was formerlyknown as Q8.

35 SOUTHDALE HOMESHousebuilder 66.90%

FOR the past two decades, this Halifaxhomebuilder has been erecting socialhousing across north England.Working with local councils and

housing associations, SouthdaleHomes builds social dwellings for rentor for sale. It is also diversifying intoproperty development, with its newlyfounded Circa Homes divisioncontributing 41% of group sales in2006, its first trading year.Under founder and managing directorChris Harris, profits have grown 67%a year from £789,000 in 2003 to£3.7m in 2006.

36 CARE PRINCIPLESMental healthcare provider 66.16%

THIS FIRM was founded in 1997 byhealth specialists who opened ahospital in Suffolk to care for patientswith learning disabilities. Purpose-builtsites in Staffordshire, Kent, EastYorkshire and Norfolk quicklyfollowed, with services being extendedto people with personality disordersand autism. The company now has380 beds, including secure care forthe most challenging patients. Thebusiness is part-owned by 3i, whichinstalled Paul Preston as chiefexecutive in 2005. Profits surged66% a year from £1.9m in 2003to an annualised £8.7m in 2006.

37 TITAN AIRWAYSAirline 65.76%

GENE WILLSON, a founder and themain shareholder of this airline, stillpilots some of its 13 planes. About halfthe company’s revenue comes fromtransporting mail and freight, but Titanalso operates a variety of charters.Recent passengers have includedPremiership and national footballteams, rock groups and even royalty.Titan says it can get a Boeing 757airborne from its main Stansted basewith just an hour’s notice. Profits havegrown 66% a year from £1.4min 2003 to reach £6.5m in 2006.


38 CASTLEBECKCare home operator 65.61%

THIS company works with the NHSand local authorities, looking afteradults with learning disabilities in 17homes across Britain. It also runs fivechildren’s homes and a fosteringagency. Last summer, Castlebeck wassold for £255m to Lydian Capital, aSwiss private-equity firm backed byIrish investors Denis Brosnan, DermotDesmond, John Magnier and JPMcManus, who also own BarchesterHealthcare (No11). Profits at the Dar-lington firm have grown 66% a yearfrom £2.2m in 2002 to £9.9m in 2005.

39 IDISPharmaceuticals supplier 65.45%

IDIS can provide patients withmedicines that are not available intheir country. It also supplies drugs forclinical trials and provides healthservices with alternatives whenmedicines are in short supply. TheSurrey company delivers to 70countries, and says it can supply20,000 products to customers who

include doctors, the NHS andpharmacies. Managing director NatalieDouglas says patients’ awareness oftreatment options and the growth inclinical trials have pushed up profits65% a year from £980,000 in 2002to £4.4m in 2005.

Pharmaceuticals supplier: Natalie Douglas of IDIS stocks 20,000 products

49 FAT FACEClothing retailer 61.69%

“LIFE IS OUT THERE” is the sloganof the active-lifestyle brand Fat Face.Targeting sporty 25-45-year-olds hasreaped rewards for the Hampshirecompany, whose founders Jules Leaverand Tim Slade started selling T-shirtsin the French Alps to fund their skiinglifestyle. Named after Le Face, aVal d’Isere black run, the company’sclothing is now sold from 125 shops inBritain, plus franchises in Dubai andReykjavik. In March, BridgepointCapital backed a £360m buyout led bychief executive Louise Barnes. Profitshave risen 62% a year from £3.4m in2003 to £14.3m in 2006.

50 CEUTA HEALTHCARESales and marketing agency 61.57%

THIS FIRM is a sales and marketingoutsourcing organisation for bigplayers in the healthcare market —Glaxo Smith Kline and Unilever areamong its clients. Ceuta Healthcarerepresents brands with combined salesof £225m a year, including householdnames such as Signal toothpaste andBrut. It has also invested in its ownbrand of beauty products, buyingShield Soap in 2004 and Halos’n’Hornschild-friendly toiletries in 2006. Led bychief executive Edwin Bessant, theBournemouth business launched apan-European alliance last year to sellhealthcare brands in 27 countries.Profits have grown 62% a year from£713,000 in 2003 to £3m in 2006.

51 FIRTH RIXSONMetal components maker 61.50%

FIRTH RIXSON traces its roots backto the 1850s, the early days of steelproduction. Today, the Sheffieldbusiness provides forged, cast andother speciality metal products for theaerospace and energy industries. Thecompany delisted from the LondonStock Exchange in 2003, when it wasacquired by the private-equity groupCarlyle and merged with Californianbusiness Forged Metals. Thanks to arecovery in the aircraft industry, thecompany has grown profits 62% ayear from an annualised £13.1m in2003 to £55m in 2006.

52 TUFFNELLS PARCELSParcel courier 61.03%

TUFFNELLS’ 600 Big Green ParcelMachine vans deliver tens of millions

of packages in Britain every year. TheSheffield courier also transportsparcels worldwide by air, road or sea.Times have changed since HaroldTuffnell started the service in 1914with a horse and cart, and the firmnow has 25 depots from Plymouth toPerth. In 2005, chief executive LloydDunn led a £33m buyout backed byBank of Scotland Corporate. Profitshave grown 61% a year from £1.2min 2002 to £4.8m in 2005.

53 MACTAGGART & MICKELHousebuilder 61.02%

THE fortunes of this housebuilderhave mirrored the rise of publichousing in Scotland. It wasinstrumental in constructing Glasgow’stenements, put up the first corporationhomes in the 1920s and consolidatedits fortunes in the post-war buildingboom. With the third and fourthgenerations of the Mickel family at thehelm, the company today is primarilya housebuilder but also owns 500assured tenancies in Edinburgh.Managing director Ed Monaghan hasgrown profits by 61% a year from£3.4m in 2003 to £14.3m in 2006.

54 RISK ADVISORY GROUPRisk management consultancy 60.75%

THIS consultancy advises companieson managing risks associated withacquisitions, hostile takeover bids,suspected fraud, IT and employeesecurity. The business has offices inLondon, France, Russia and Kenyaand operates around the world. ItsJanusian subsidiary advises on securityfor operations in Iraq. Under chiefexecutive Bill Waite, who waspreviously with the Serious FraudOffice, profits have grown 61% a yearfrom £996,000 in 2002 to anannualised £4.1m in 2005.

55 BETFAIROnline bookmaker 60.70%

THE online bookie Betfair says it offersbetter odds than betting shops andcasinos. The company doesn’t take anybets itself but charges commission formatching bets between punters onsporting events and casino games,processing 6m deals a day. Thebrainchild of Andrew Black, Betfairwas launched with co-founder EdwardWray in 1999 and now has websites in18 languages. A third of revenuecomes from overseas, helping profitssurge 61% a year from £8.3m in 2003to £34.6m in 2006.


Marketing healthcare: Ceuta’s Edwin Bessant and Annette D’Abreo

56 2 SISTERS FOOD GROUPPoultry processor 60.36%

THIS company helps to keep thenation’s kitchens stocked with crispychicken wings and drumsticks. TheWest Midlands firm has poultryprocessing units in Britain and theNetherlands employing more than2,500 staff. It supplies chickenproducts under customers’ labels,including Tesco and Marks & Spencer,and it also has its own Buxted brand.The company, owned by chiefexecutive Ranjit Boparan and his wifeBaljinder, bought the chickenprocessor John Rannoch in 2005.This helped fuel growth in profits of60% a year from £5.2m in 2002 to£21.3m in 2005.

57 PARK RESORTSCaravan park operator 60.35%

PARK RESORTS runs caravan parksfor holidaymakers at 35 seasidelocations from Scotland to the Isle ofWight. It also sells holiday homes. Thecompany currently has 18,500 pitches,with planning permission for a further1,250. Over the winter it completed an£18m revamp of its facilities, mainly atthe 19 GB Holidays sites acquired in2004 when ABN Amro merged thecompanies. ABN Amro recently soldPark Resorts to the private-equity firmGI Partners for £440m. Chief executiveDavid Vaughan has delivered annualprofit increases of 60% from £6.4m in2003 to £26.6m in 2006.

58 WOOD MACKENZIEEnergy researcher 59.62%

THE Edinburgh energy and lifesciences expert Wood Mackenziestarted life as a stockbroker but foundthere was greater demand for itsresearch in the oil industry. After a2001 management buyout led by chiefexecutive Paul Gregory, the companyshifted its focus to research andconsultancy for customers such asShell and BP. Investment in newresearch products is bearing fruit, withprofits growing 60% a year from anannualised £3.2m in 2002 to £13m in

2005. Candover Investments took asignificant minority stake in 2005.

59 ACISTransport software developer 58.58%YOU can wait for your bus in thecomfort of your home thanks tosoftware developed by ACIS. Thecompany, which supplies 45 localcouncils, uses GPS to track buses andsends arrivals information to bus stops,websites and mobile phones. Its largestinstallation includes displays at 28,000shelters in West Yorkshire, where2,500 buses have systems to space outvehicles so that three don’t come atonce. Under chief executive IanBuckley, profits have accelerated59% a year from £818,000 in 2003to £3.3m in 2006.

60 HARRY YEARSLEYFood wholesaler 58.29%

THIS Lancashire company started outtrading fresh fruit and veg, but nowsells frozen food to wholesalers andretailers such as Tesco andSainsbury’s. Managing director HarryYearsley, the third generation of thefamily to take the helm, hasmasterminded the company’s growthinto one of Britain’s largestcold-storage and distribution firms,serving the likes of Heinz and BirdsEye. Profits have grown 58% a yearfrom £1.7m in 2003 to £6.7m in 2006.

61 FIRST OILOil and gas producer 58.25%

OIL and gas exploration is a riskybusiness, with only one in fiveventures proving a success. This hasn’tdeterred First Oil, which claims to bethe largest privately-owned companyproducing oil and gas in the NorthSea. Led by chief executive Ian Suttie,the Aberdeen business operates in 11fields. Customers for its 5,000 barrelsof oil a day include BP and Shell,while Centrica and Total buy the firm’sgas. Rising gas prices helped push upprofits 58% a year from £3.1m in2003 to £12.5m in 2006.

62 RBGEnergy services provider 57.82%

RBG was created in 2004 in athree-way merger between Rigblast,MacGregor Energy Services andMach-Ten Offshore, in a deal drivenby 3i and Ashley Group. TheAberdeen firm does maintenance workfor the oil and gas industry andprovides engineering support. RBGassists its customers throughout thecycle from feasibility study to produc-tion, rig repair and decommissioning.Led by chief executive Doug Sedge,the company boasts a client list thatincludes Exxon Mobil, BP and Total.Profits have grown 58% a year from£3m in 2002 to £11.7m in 2005.

63 KELTRUCKTruck dealer 57.60%

THIS West Bromwich company sellsnew and used trucks and parts underthe Scania franchise from 14 Midlandsdealerships. It also offers breakdownassistance, maintenance and a repairservice, and it claims to operate theworld’s largest Scania recycling facilityfor used parts. Chairman Chris Kelly isa serial Scania entrepreneur. He set upKeltruck, his second Scania venture, in1983. In 2004, Keltruck bought yetanother Scania dealership for £5.6m,also part-owned and founded by Kelly.This acquisition helped to drive upprofits 58% a year from £879,000 in2002 to £3.4m in 2005.

64 PENTA CONSULTINGRecruitment agency 57.58%

PAUL CLARK and Richard Wilson setup this IT and telecoms recruitmentconsultancy in 1998 with a £127,000loan from the company’s chairman,Robert Harverson. The business nowhas 16 offices on five continents anddeploys contractors across 80countries, handling their tax, workpermits and travel arrangements.Its clients are mainly finance andtelecoms companies. With a Queen’sAward for Enterprise newly under itsbelt, the company has grown profits58% a year from £829,000 in 2003to £3.2m in 2006.

65 ENTECEnvironmental consultancy 57.13%

THE BOOM in environmentalawareness has stood this company ingood stead. Managing director SimonArmes-Reardon has broadened Entec’sscope from its historic water-sectorexpertise; it now advises on a widevariety of environmental andengineering issues ranging from landregeneration to town planning. Profitshave risen 57% a year from £1.5m in2003 to £5.9m in 2006, boosted bynew projects such as gauging theimpact of offshore wind farms.

66 ACTEONOffshore services provider 56.89%

ACTEON provides the oil and gasindustry with technology for linkingthe seabed to the surface. Profits at theNorwich company have been boostedby a series of acquisitions, rising 57%a year from an annualised £2.1m in2002 to an annualised £8.3m in 2005.Chief executive Richard Higham, wholed a secondary buyout last year, hasfurther takeovers in his sights.Leading specialist in Scania trucks and parts: Chris Kelly of Keltruck

75 DCKJewellery retailer 53.78%

TEENAGE GIRLS are the targetcustomers for Topshop’s jewellerybrand Freedom, supplied by DCK

Concessions, which provides fashionjewellery for 3,000 concessions in22 countries. Headed by StephenLongdon, DCK also supplies MissSelfridge, BHS and Dorothy Perkins.It has 100 stand-alone jewellery storesaround the world and is openingsimilar operations in Britain under itsMuse brand. Founder Alan Witzenfeldstill retains a stake in the company,which achieved profit growth of 54%a year from £4.7m in 2003 to £17.2min 2006.

76 OGILVIE GROUPBuilding contractor 53.64%

FORMED in 1946 by brothers Duncanand Jack Ogilvie, this Stirlingconglomerate is still family-owned.Some 60% of turnover comes fromconstruction and housebuilding forcustomers that include Barratt Homes,Whitbread and Scottish housing

associations. But building is far fromits only focus. Ogilvie Group alsooperates car fleets, with 6,500 vehiclesrented to corporate clients. Itscommunications division, meanwhile,installs secure IT and telephonesystems. Profits have risen 54% a yearfrom £1.9m in 2003 to £7.1m in 2006.

77 SIMONS GROUPBuilding contractor 53.27%

OWNED and run by brothers Paul andPhilip Hodgkinson, this constructionand development expert aims to bethe first choice for a select group ofcustomers. Repeat business from thelikes of Asda, B&Q, House of Fraserand Debenhams has allowed it toimprove efficiencies with each newproject and grow profits 53% a yearfrom £2m in 2003 to £7m in 2006.It is now expanding its developmentdivision, which identifies potential sitesfor town-centre buildings such aswarehouses, shopping centres andoffices.

78 SENAD GROUPSpecial education provider 52.88%

SENAD runs schools and care homesfor children and adults with specialeducational needs. It was formed in2003 when Sovereign Capital Partnersbacked a management team headed by

Terry Lee to acquire three schools inDerbyshire. Senad now runs sevenresidential schools and four carehomes in England and Wales. Abuyout by Three Delta last year hasprovided finance to acquire newproperties and expand existing ones.Profits rose 53% a year from £1.9m in2003 to £6.7m in 2006.

79 MONEYSUPERMARKET.COMFinancial website operator 51.94%

IN 1999, IT expert Duncan Cameronand former mortgage consultantSimon Nixon launched a website thatcompares personal-finance productssuch as loans and mortgages. TheWelsh company diversified into traveland insurance in 2003 under thebrands Travelsupermarket.com andInsuresupermarket.com, and today italso compares prices on cars,broadband, utilities and mobile

phones. Some 90% of Money-supermarket’s revenue comes fromintroduction fees on products sold.The company’s profits have risen 52%a year from an annualised £6.7m in2002 to £23.4m in 2005.

80 NISBETSCatering equipment supplier 51.06%

HAVING started out in 1983 sellingstart-up kits to catering students, thisBristol company now providesrestaurants and caterers withequipment ranging from knives andaprons to ovens and fridges. ChairmanAndrew Nisbet founded the companywith his father Peter and has boostedsales by opening five offices in Europe.Developing its own range of productshas helped Nisbets to raise profits51% a year from £3m in 2002 to£10.2m in 2005.

81 SOREXPest control manufacturer 50.25%

THERE are more than 60m rats inBritain, but there would be a lot moreif it weren’t for Sorex. This Cheshirecompany manufactures and marketspest-control products to keep birds,insects and rodents at bay. Thebusiness, sold by Shell in 1996, hassince bought an American companyspecialising in termite control. Sorex

has customers in 45 countries, with70% of sales coming from America.This international expansion hashelped to boost profits 50% a yearfrom £2m in 2002 to £6.8m in 2005.

72 MAXIMUSCLESports nutrition supplier 55.55%

WHETHER it is a rippling six-packyou are after or simple fat loss, thisWatford company says it can help.Maximuscle is a sports nutritioncompany, selling its high protein foodsonline, through gyms and in the likesof Boots and Tesco. The business isnow headed by chairman Paul Hickand managing director Ivor Harrisonafter a £9.7m takeover deal in 2004,backed by Piper Private Equity. Asuccessful marketing drive has helpedpush up profits 56% a year from£882,000 in 2003 to £3.3m in 2006.

73 CCGBuilding contractor 54.26%

CCG has been keeping roofs overScottish heads for more than three

decades, and is leading the way insocial housing. This Glasgowconstruction firm has divisionsspecialising in flooring, plumbing andjoinery, and it trains many of its ownstaff, taking them on as apprentices.The firm has also diversified fromhousebuilding, with projects completedfor local councils, schools andhospitals. Under managing directorAlastair Wylie, profits rose 54% a yearfrom £1.8m in 2003 to £6.6m in 2006.

74 J&J HASLETTFood wholesaler 53.97%

THIS Belfast wholesaler of food, drinkand consumer goods was set up by theHaslett brothers in the 1850s. It alsoowns the Mace food store franchise inNorthern Ireland, with 188 shops. Thecompany is owned by its managementafter managing director MichaelHamilton led a buyout in 2003. It hassince sold off its loss-making cateringdivision and has focused on growingthe Mace business. Profits have risen54% a year from £887,000 in 2002 to£3.2m in 2005.

Pumping up the profits: Maximuscle made £3.3m last year by selling high-protein foods to sportsmen

82 ROBERTSON GROUPBuilding contractor 50.02%

THIS FIRM has profited from beingone of the earliest players in theprivate finance initiative (PFI) sector,winning contracts worth millions ofpounds to build schools, hospitals andhousing. Once completed, Robertsonmaintains the buildings for up to35 years, providing cleaners andeven cooks. The Moray-basedcompany also makes timber frame kits.Its housebuilding business, with salesof £48m, is being spun off into aseparate company. Owner BillRobertson says that giving managersthe freedom to run each area of thebusiness independently has helped topush up profits 50% a year from£3.3m in 2002 to £11.3m in 2005.

83 TJ HUGHESDepartment store operator 49.82%

IN a nation of bargain hunters,discount retailing is big business, andLiverpool-based TJ Hughes is reapingthe benefits in its cut-price departmentstores. Chief executive Robin Dickie,former managing director of Barclays,has pursued an aggressive expansionprogramme, opening six new storeslast year. Its 50 outlets operate a“lowest price in town” strategy on awide range of clothing, household andelectrical goods. Profits have soared50% a year from £3.6m in 2003 to£12m in 2006.

84 BAXTER STOREYContract caterer 48.58%

BAXTER STOREY prides itself onproviding quality food for clients suchas Barclays, Oracle and Selfridges.The company’s services range fromstaff restaurants to fine dining atboard meetings, and it says this hashelped it become Britain’s largestindependent contract caterer.Rebranded after the 2004 merger ofWilson Storey Halliday and BaxterSmith, Baxter Storey expanded intonew areas, including Dublin andManchester in 2006. Environmentallyaware, it is reducing “food miles” bybuying locally, and its Reading headoffice has achieved carbon-neutralstatus. Under chief executiveAlastair Storey, profits climbed 49%a year from £1.8m in 2002 to £5.9min 2005.

85 REGARD PARTNERSHIPCare home operator 48.05%

TWO NURSES who specialised inlearning disability and mental health,John Webster and John Farragher, setup the Regard Partnership in 1994 toprovide care and residential homes forpeople with learning disabilities.The company, based in southwestLondon, now has 101 homes acrossEngland and Wales. Growth has beenboosted by its acquisition of threecare-home providers since 2003,partly funded by Bowmark Capital’s£6m cash injection in 2004 when ittook a 27% stake in the company.Profits at the Regard Partnership haveincreased 48% a year from £1.7m in2003 to £5.5m in 2006.


67 KEEPMOATHousebuilder 56.79%

KEEPMOAT has benefited from thegovernment’s initiative to upgradesocial housing by 2010. It earns mostof its revenues by building andrefurbishing rental homes for councilsand social landlords in regenerationareas from Newcastle to Birmingham.In the last year the Doncaster companycompleted 34,000 homes for social useand built a further 1,000 that it solditself. Chief executive David Blunt hasraised profits 57% a year from £10.7min 2003 to £41.3m in 2006.

68 RP VALVESValve distributor 56.60%

AT the age of 26 Robert Palmerspotted a gap in the market fornon-standard valves and used a£6,000 redundancy cheque to sethimself up in business. Thirteen yearson, he is managing director and soleowner of Suffolk-based RP Valves,a worldwide distributor of valves,gaskets and flanges for use in the oil,gas and petrochemical industries.Customers include the likes of Shell,Exxon, BP and their contractors.Profits have grown 57% a year from£1.5m in 2003 to £5.9m in 2006.

69 ANDREWS MARBLES & TILESTiling importer, contractor 56.42%

WITH projects ranging from sinks andstaircases to swimming pools, thisLeeds business supplies Spanish andItalian tiles for homes, gardens andcommercial buildings across thecountry. Founded by journeymanArthur Andrews in 1886, thecompany’s contracts include therefurbishment of Doncaster’sFrenchgate Centre and the creation ofSheffield’s Ponds Forge InternationalSwimming Pool. Led by Ian Taylorand David Whalley, the company hasgrown its profits 56% a year from£1.1m in 2002 to £4.4m in 2005.

70 YEO VALLEYYoghurt, dairy maker 56.18%

YEO VALLEY has changed greatlysince the 1970s, when Roger andMary Mead sold clotted cream at theirfarm gate and made yoghurt from theleftover skimmed milk. The company’ssuccess owes much to the soaringdemand for traditionally grown,chemical-free food — about half thebusiness is organic and growing fast.Under managing director Tim Mead,profits rose 56% a year from £1.6m in2002 to an annualised £6m in 2005,mostly due to a rebound from toughtrading conditions.

71 JOHN LAWRIE GROUPMetal recycler and trader 56.10%

THE John Lawrie Group trades250,000 tonnes of metal every year —enough to build four QE2 cruise liners.Founded over 70 years ago, theAberdeen firm processes scrap metaland sells steel tubing for piling.Generating more than 75% of salesoverseas won the group a Queen’sAward for Enterprise last year underchief executive Brian Meldrum, whoheaded a 1983 management buyout.Soaring sales, particularly to China,have pushed up profits 56% a yearfrom £1.7m in 2002 to £6.4m in 2005.

THE Sunday Times Price Waterhouse CoopersProfit Track 100 is compiled by Fast Track, theOxford-based research company that publishesleague tables of Britain’s top-performing privatecompanies and runs invitation-only events for theirowners and directors to meet our sponsors.It has compiled private-company league tablesin The Sunday Times for the past 11 years.

Fast Track was set up and is run by Dr HamishStevenson, who also holds an associate fellowshipat Templeton College, Oxford University.

Its six annual league-table supplements and itsnational and regional owners’ dinners help toraise the profile of private companies and create

a network that brings successful entrepreneurstogether.

Fast Track’s sole source of revenue is fromsponsors. We would therefore especially like tothank Price Waterhouse Coopers for their titlesponsorship of Profit Track 100 for all past eightyears, as well as our main sponsors — Bank ofScotland Corporate, UBS Wealth Managementand Microsoft.

The Fast Track team, pictured right, includedthe Profit Track 100 research team: compiler andpublisher Hamish Stevenson; head of researchEva Gronbech; research manager LindsayUppadine; Ones to Watch manager Andy

Cotgreave; Alice James, Caroline Potter, MichaelCook, Kaye Johnson, Tom Marshall, NickyWillmore and Ying Chen; and freelance journalistAlistair McLean.

Nominations for next year’s Profit Track 100can be made through our websitewww.fasttrack.co.uk or sent to Fast Track at

Angel Court81 St ClementsOxford OX4 1AW

Phone 01865 297100Fax 01865 297001E-mail [email protected]

86 WATSON PETROLEUMFuel distributor 48.03%

WATSON PETROLEUM was founded50 years ago when chairman TonyWatson bought a tanker to deliver fuelto Wiltshire homes. His son, also Tony,now manages 27 depots across thecountry, with a fleet of 170 tankersserving 90,000 customers, includingindustrial and agricultural users. Aspree of acquisitions in the past fiveyears has helped to boost profits 48%a year from £1.8m in 2003 to £5.8min 2006. More takeovers are planned.

87 DRIVE ASSISTCar lessor 47.85%

WHEN a car crash puts your vehicleoff the road, Drive Assist is there tohelp. The Staffordshire companyprovides hire-car cover and invoicesinsurers directly. Founded by SteveBinch in 1992, it also owns a carsupermarket and offers corporaterentals and warranty replacementsfrom its fleet of 13,000 vehicles. Theuse of handheld computers with GPSfor delivery staff has cut paperworkand improved efficiency, driving upprofits 48% a year from £5.8m in2003 to £18.7m in 2006.

88 ALLAM MARINEElectricity generator maker 47.24%

FATHER and son Assem and EhabAllam claim Allam Marine is the onlyBritish wholesaler of diesel and gaspowered generators, supplying 15,000units a year. Some 90% of these areexported, winning the Hull firm aQueen’s Award for International Tradein 2006. The generators are used toextend patchy national grids or as abackup in case of power cuts.Winning business in new marketssuch as Russia, United Arab Emiratesand China has powered up profits47% a year from £1.1m in 2002 to£3.6m in 2005.

89 BRITISH SEAFOODSeafood wholesaler 46.89%

THIS FIRM supplies fish and shellfishto food producers worldwide. Itsources fish from all over the globe,particularly from Asia, where itcontrols several production facilities.As well as consumer brands, it alsoserves independent catering outletsand wholesalers across Britain andIreland, supplying them with meatand poultry in addition to seafood.Managing director Mark Holyoakefounded the firm in 1992 and remainsin control. Profits have grown 47% ayear from an annualised £3.7m in2002 to £11.9m in 2005.

90 SPC HOLDINGSMetal recycler and trader 46.46%

THIS Norwich company trades asEasco Group, a metal merchant andrecycler that works with steel firmsaround the world, including Corus andMittal. The family-owned group isheaded by Andre Serruys, the secondgeneration at the helm. As well as themetals business, it boasts a residentialdevelopment and commercial propertyportfolio worth about £100m, and ithas a 50% stake in another venturethat designs and makes componentsfor the automotive and aerospaceindustries. Boosted by growingdemand for scrap from India andChina, profits have soared 46% a yearfrom £3m in 2003 to £9.4m in 2006.

91 TJ MORRISDiscount retailer 46.38%

TOM MORRIS opened his first storealmost 30 years ago with help from hisshopkeeper father. Today, he sellscut-price branded goods through 125Home Bargains outlets across Wales,the Midlands and the north. Withthree brothers now on board, Morrisshows no signs of taking his foot offthe pedal. The Liverpool companysays it aims to grow to 500 stores,employing 10,000 staff, by 2015.Profits have risen 46% a year, from£7.3m in 2003 to £22.8m in 2006.

92 HANBURY HOLDINGSHaulier 46.15%

HANBURY hauls shipping containers,transporting them from the nation’sports on its fleet of 520 lorries. GlynDavies, Ian Wilson and Phil Westfounded the firm in 1999. The threehad previously worked together atanother distribution operator, whichDavies had set up with his

brother-in-law and later sold toSecuricor. The Suffolk haulier, whichhas also diversified into truck rentalsand sales as well as property, has beenbuying up failing competitors. Thishas pulled up profits 46% a year from£1.3m in 2003 to £4.1m in 2006.

93 LFF GROUPOil equipment supplier 45.48%

LFF gets its name from the fittings andflanges it supplies to the oil, gas andpetrochemical industries. It wasfounded by Mark Prior, StewartPoulten and Roberto Galperti in 1983to furnish multinational oil companieswith piping, fittings and flanges for oilplatforms and refineries. The firm hasfacilities in Aberdeen, London andnorth England, and it recently openedoffices in Kazakhstan and Azerbaijan.Overseas expansion has helped toboost profits 45% a year from £1.9min 2002 to £5.8m in 2005.

94 FIRCROFTRecruitment agency 45.26%

THIS Cheshire firm was set up toprovide recruitment services to the oiland gas industries, but has sinceexpanded into the nuclear, chemical,construction and pharmaceuticalsectors. It handles all aspects of theemployment process, including payrolland performance assessment, forclients that include BP, Bentley Motorsand the engineering firm ABB.Johnathan Johnson, son of founder andchairman John Johnson, was appointedchief executive in January 2005. Profitshave grown 45% year from £1.3m in2002 to £4.1m in 2005.

95 REISSClothing retailer 44.42%

ONE of the last owner-founders on theBritish high street, David Reiss hastransformed his menswear businessinto a designer brand with globalambitions. Reiss has 55 stores,including two in the Middle East, onein Scandinavia and six in America. It isin the process of opening a 12,000 sq ftstore in Los Angeles as it heads towardsits goal of 250 outlets worldwide.Continued expansion and strong salesgrowth have increased profits by 44%from £2.4m in 2003 to £7.2m in 2006.

96 UNICOMTelecoms services provider 44.36%

UNICOM offers cut-price telecom andbroadband services via BT’s networkto 60,000 small businesses. Thecompany was founded by SimonClarke in 1998 to offer utility andtelecoms services but has focused ontelecoms since 2004. It claims tosupply more than 400m minutes ofcalls a year and has recently expandedinto web design and hosting. Unicomsays its competitive prices andexcellent customer service havequadrupled its client base in two years,driving up profits 44% a year from£1.7m in 2003 to £5.2m in 2006.

97 SUPERGLASS INSULATIONInsulation manufacturer 44.14%

INCREASINGLY stringent energyefficiency regulations are good newsfor Superglass, which says it isBritain’s only independent manufacturer

of mineral wool insulation. Thecompany takes its own environmentalcredentials seriously, investing heavilyin greener manufacturing processes,which recycle glass and waste water.Backed by National Bank of Greece’sprivate-equity arm, chief executiveJohn Smellie led a £40m buyout fromEncon Insulation in 2005. Profits haverisen 44% a year from £2.8m in 2002to £8.4m in 2005. A recent £850,000grant from the Scottish Executiveshould boost production efficiencyat the firm’s Stirling plant, creatingfurther growth.

98 JIMMY CHOOLuxury accessories designer 43.77%

A DECADE AGO, a glamorousaccessories editor at Vogue UKdecided that the nation’s womenneeded really fabulous, comfortableshoes. With a £150,000 loan from herfather, Tamara Mellon set out to fillthe gap, along with East End couturefootwear designer Jimmy Choo. Theprivate-equity house TowerBrookbought the iconic shoe and accessoriesdesigner in February for £185m, andchief executive Robert Bensoussansays he has more takeovers in mind.Profits at the company have grown44% a year from £1.2m in 2002 to£3.7m in 2005.

99 RETLAN MANUFACTURINGTrailer manufacturer 43.21%

LAST YEAR this company produced5,000 trailers from its sites in NorthernIreland and Nottingham. ItsSDC Trailers arm makes trailersfor articulated lorries, while MDFEngineering specialises in the chassisfor these vehicles. Prices start at£15,000 and go up as high as £40,000per unit, and customers range fromsole traders, who buy one at a time,to the likes of haulier Eddie Stobart,which recently ordered 700. Profitshave risen 43% a year, from £2.8min 2003 to £8.3m in 2006.

100 BAYFORDFuel distributor 43.07%

FOUNDED as a coal merchant afterthe first world war by four demobilisedsoldiers, Bayford has evolved into abig player in the fuel distributionmarket. Managing director JonathanTurner is the third generation to takethe reins and has overseen profitgrowth of 43% a year, from £1.2m in2003 to £3.5m in 2006. Bayford workswith National Waterways to deliverfuel by canal, meaning fewer tankertrips and a lower carbon footprint.It also runs a fuel-card businessand owns the rights to the Gulfpetrol-station brand in Britain.


Going places: Watson’s 170 tankers deliver fuel to 90,000 customers

THE SUNDAY TIMES PRICE WATERHOUSE COOPERS PROFIT TRACK 100

Headquarters locationHeadquarters locationHeadquarters locationof of of companies companies companies in thein thein theProfit Track 100Profit Track 100Profit Track 100

Southwest 666

Southeast 181818GreaterLondon 212121

East East East 101010

NorthNorthNorth222222

Midlands Midlands Midlands 777

ScotlandScotlandScotland121212

Wales Wales Wales 222

NorthernNorthernNorthernIrelandIrelandIreland222


Every single company in theProfit Track 100 has a successstory to tell, but each year theFast Track research team also

interviews many growing companiesthat for one reason or another did notmake it into the final 100.Last year, for the first time, we show-

cased ten of these companies, and it isno surprise to find that one of them —Park Resorts — features in this year’sleague table at No 57. The luxury cara-van-parks operator’s profits havesurged since its 2004 merger with GBHolidays — a merger that has deliveredgrowth and economies of scale. InvestorABN Amro reaped the benefits when itsold the company to private-equity firmGI Partners for £440m last month.Fast Track has selected this year’s ten

up-and-coming companies on profitgrowth and additional criteria such asthe strength of the management team,innovation, success in overcoming chal-lenges and growth prospects.For example, Mace Group’s manage-

ment team took radical action to dealwith huge fluctuations in the quality ofwork done by contractors. They decidedto found their own training academy tocreate a skilled workforce for the com-pany, which counts the London Eye

and Heathrow’s Terminal 5 among itsprojects.Chief executive Stephen Pycroft says

the scheme, which has cost more than£500,000 over the past two years, isalready reaping substantial dividendsby ensuring more repeat business andby motivating workers. “It’s about guar-anteeing quality for our clients,” he says.“We know the people we train ourselveswill be better motivated because theyfeel they are truly part of the project.”Scoring high on innovation, The Mill,

which is backed by private-equity firmCarlyle Group, produces visual effectsused in advertisements for clients such

as Budweiser and Levi’s. Its newBeam.TV venture has won clients suchas Nike and Nokia by distributingstreamed video direct to their storesworldwide from servers based in Lon-don’s Docklands. The company says itstechnology is unique in the industry,and that, being faster, cheaper and morereliable than other systems, it hashelped the company grow.“We can use Beam.TV to give us an

edge on the competition,” says chiefexecutive Robin Shenfield. “It is under-pinned by some very innovative use oftechnology, and it really has no directcompetitor.”One business that has won through

big challenges is Deb Group, maker ofthe Swarfega range of hand-cleaningproducts. With its traditional salesopportunities limited to grime-encrustedmechanics, business declined in the1990s. A vigorous research and develop-ment programme created dispenserswith patented cleansing cartridges,enabling hand washing without water,and — more importantly — eliminatingthe need for sinks. This breakthroughhas given Deb access to the lucrativeblue-chip market, allowing it to build onthe health benefits of clean hands in theoffice environment.Good management armed with the

skills to focus on untapped potential hasenabled all these ten companies to growand prosper.We look forward to seeing how they

fare in the year ahead, and whether anyof them will appear in the 2008 ProfitTrack 100 league table.n Suzi Woolfson, a partner at PriceWater-house Coopers LLP who works with entre-preneurial companies, was talking to AliceJames. The companies featured here arenot endorsed, guaranteed or recommendedby Price Waterhouse Coopers.


Ones to Watch showcases a selectionof companies whose annual profitgrowth was less than the minimum43% of the Profit Track 100, but havegrown their profits steadily and arelikely to continue to do so.

A judging panel including theentrepreneur Luke Johnson andFast Track’s Hamish Stevenson willpick a winner to receive a specialaward at the owners’ dinner.

BEST OF THE REST

ONES TO WATCH

BUDGET GROUP Insurance intermediary Peterborough 25,593 154,331 2,112

DEB GROUP Skincare product maker Derbyshire 8,439 71,010 581

EURO CAR PARTS Car spares retailer Wembley 4,143 68,610 688

HOLLOWAY WHITE ALLOM Construction firm Central London 4,275 49,875 204

HUNTRESS SEARCH Recruitment consultancy London 3,778 52,756 1,662

LETTS FILOFAX Diary publisher Midlothian 8,927 56,496 540

MACE GROUP Construction project manager North London 13,664 372,460 1,957

THE MILL Visual-effects producer Central London 6,057 32,535 238

RADLEY & CO Fashion accessories maker Central London 4,844 41,044 179

ZENITH Vehicle leasing services Leeds 3,607 60,761 83

Ten firms to keep an eye onCompany Activity HQ location *Profit,£000s Sales,£000s Staff

Suzi Woolfson of PwCprofiles ten companieswith sustained profitgrowth that were notin the league table

*Profit is defined as operating profits with directors’ remuneration added back

Budget Group claims to be one of Britain’s largest independent insurance intermediaries. It handles about 2m policies, underits own brands and through Junction, which provides own-label insurance services for clients including the Post Office andMarks & Spencer. Budget Group forecasts profits of more than £41m in 2007.

When sales of its original skincare products, including Swarfega, declined in the 1990s, Deb turned itself around by inventing anew dispenser system. It now claims to be the global market leader in workplace skincare, with 8 manufacturing plants and 21subsidiaries across the world. It forecasts sales of £100m by 2008.

Sukhpal Singh, chief executive, began selling car parts in 1978 when he was just 18. His company now operates from53 branches across the country, employing more than 1,300 staff. It forecasts sales this year of £121m and plans to expandto 100 branches within five years.

This upmarket construction company has created new divisions to increase its range of services since chief executive Bob Coleled a £5m management buyout in 2002, backed by Matrix. Clients include the Grosvenor Estate, Oxford’s Saïd Business Schooland the Bank of England. Further acquisitions are expected to boost sales in 2007 to £73m.

Huntress is a recruitment consultancy with 15 branches. When the dotcom bubble burst in 2000 the company switched frominternet-based recruitment to a more traditional model. Since then it has grown organically, and says it now leads the industryin fees generated per consultant. Chairman Gary Laurence claims organic growth will push sales to £130m by 2010.

Chief executive Gordon Presley led a £12m buyout of Letts in 2001. Later that year the group bought Filofax for £13.8m,and has since worked on expanding the brands globally. A £45m secondary buyout, backed by Phoenix Equity Partners, wascompleted in March 2006, and the group plans to grow through further acquisitions and by increasing overseas sales.

This construction project management company claims 70% of its business is from repeat customers. Ensuring good customerservice is a priority for chief executive Stephen Pycroft. The company conducts client surveys to identify problems in projectsand has created its own school for subcontractors. Mace Group plans to double sales by 2010.

This visual-effects company works on advertisements for Sony, Nike and Levi’s, and has added special effects to BBC’s DoctorWho. Its Beam.TV service is a new global network that distributes digital content to broadcasters, retailers and advertisingagencies. After a secondary buyout in February, backed by Carlyle, the company plans further international expansion.

Radley & Co makes leather handbags under the brands Radley, Tula and Hidesign. Business planning, process improvementand investment in IT have all helped to increase margins and improve forecasting and stock control. Phoenix Equity Partnersbacked a £45m management buyout in 2006, after a doubling of turnover since 2003.

Zenith Vehicle Contracts manages corporate car fleets, and has introduced new services such as sharing with customers thesavings generated by efficient fleet management. The company has been through two buyouts in three years; the most recentin 2005, backed by Dunedin and worth £27m. Zenith forecasts sales of £67m this year.


THE SUNDAY TIMES . APRIL 22, 2007 19


2007-ProfitTrack100_178193

Documents

pepsi max rollercoaster

price waterhouse coopers

latest filed accounts

latest audited accounts

booming housing market

virgin credit card

london stock exchange

ubs wealth management