Profits in the UK’s top 350 UK listed companies reached a record high in 2017 extending a period of growth not seen since the immediate aftermath of the recession, a report said.
According to the quarterly ‘Profit Watch UK’ report from The Share Centre, strong economic expansion around the world, coupled with positive exchange rate effects, were a “shot in the arm” for multinationals.
Large multinationals account for seven tenths of the UK’s revenues; their sales rose 30.1%, buoyed by the weakness of the pound in 2017.
The UK’s profits leapt 158% to a record £153.8 billion €135.4 billion and the UK’s sales climbed 20.8% to a three-year high of £1.33 trillion.
Only one sector, banking, saw lower revenues, though this did not mean lower profits, which tripled.
There were strong contributions from the mining and oil sectors, whose profits were hit in 2015 and 2016 by low commodity prices. The improvement was broadly spread across the market as four-fifths of sectors saw higher profits.
Helal Miah, investment analyst at The Share Centre said in the year ahead, the global economy would provide a supportive backdrop, though it could be hard to top the latest record profit.
He added: “The UK is beset by sluggish growth, and falling confidence while its relationship with Europe is redefined, so strong growth elsewhere in the world is a saving grace for UK plc, providing enhanced opportunities to expand business abroad.”
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