Chemicals manufacturers’ global sales buck Brexit downturn fears
14 Jun 2018
The UK’s top privately owned chemicals and coating manufacturers have bucked fears of a Brexit downturn, averaging sales growth of more than 14% a year over the last two years, with market leaders increasing by one fifth.
The annual Alantra Chemicals and Coatings Fast 25 ranking of non-listed companies says that 10 firms have managed double digit increases for the last 24 months, despite industry uncertainty around Brexit.
The chemicals and coatings sector’s international sales of close to £50 billion have been a key driver, claims the report, with Europe a key market.
Alantra UK advisory business director Ali Robertson commented: “The remarkable rates of growth generated by many Fast 25 companies are testament to the innovative, entrepreneurial and outward-looking culture of the UK’s chemical and coatings industry.
“Despite headwinds including pressure on margins and the lack of clarity around Brexit, such businesses continue to prosper and on average have shown a higher level of growth this year than they did 12 months ago.”
Specialty chemical manufacturer Lambson, which tops the list for sales increases with nearly 25% growth over both the last two years, derives 80% of its sales from international markets. Second placed Exwold Technology managed compound sales growth of 23%, exporting nearly 70% of its products.
Despite headwinds including pressure on margins and the lack of clarity around Brexit, such businesses continue to prosper and on average have shown a higher level of growth
Ali Robertson, director, Alantra UK advisory business
Alantra global head of chemicals Bernd Schneider said acquisitions of British companies by international operators had been an important factor in the last year, with the trend likely to continue.
“Consolidation is going to continue to be an important theme in the chemicals industry globally, with mega deals boosted by the availability of cheap money, and further deal making on a smaller scale as the dust settles,” he commented.
“Demand for UK businesses will remain strong, particularly given the way in which Asian buyers are now increasingly looking to boost their access to intellectual property and technology.”