£4bn boost sees North West bounce back from Brexit

The North West’s listed companies have recovered strongly from the immediate market volatility following the EU referendum, adding almost £4bn to their total market capitalisations in the last three months, according to Deloitte.

The business advisory firm’s latest North West Share Index shows a significant increase over the last quarter, with the value of the region’s listed companies jumping from £34.8bn to £38.7bn, a rise of 11 per cent.

The region has also outperformed the national average, with the FTSE All-Share seeing a rise of 2.7 per cent. This was perhaps unsurprising following the second quarter of 2016, which saw a total loss of £1.4bn for the North West’s listed companies, while the FTSE All-Share rose by 3.1 per cent.

The North West’s FTSE-listed companies have shown impressive growth in the last quarter, with total market capitalisation rising nine per cent from £25.86bn to £28.25bn. In particular, Deeside-based housebuilder and construction company Redrow witnessed a 27 per cent boost, adding £316m to its total market capitalisation of £1.4bn. Having seen a 17 per cent increase in new homes over the last 12 months, the business recently announced record pre-tax profits for the year, rising 23 per cent on 2015 to £250m.

In total, eight of the region’s 15 listed businesses added more than £100m to their market caps, with the value of sports fashion giant JD Sports’ rising by £627m to £2.8bn.

Those listed on the Alternative Investment Market also saw strong levels of growth, with an average increase of 28 per cent to the total market cap. Manchester-based fashion retailer Boohoo.com, following September’s 130 per cent surge in profits, witnessed growth of 77 per cent.

Chris Robertson, partner and head of plc activity at Deloitte in the North West, said: “The North West’s listed businesses have shown resilience in the last quarter, with the £4bn rise underlining the strength of companies in the region. In particular, retail businesses including JD Sports and boohoo.com have witnessed strong growth, as low interest rates have resulted in consumers targeting spending over saving.

“While it is extremely encouraging to see the North West outperform the national average, it is worth noting that the market volatility witnessed over the last six months is likely to remain in the coming years as the finer points of Brexit are worked out.”