Mid- sized businesses proving more ‘ resilient’ to rising Brexit uncertainty

● Report says sector outpaced big and small companies in overseas turnover

The UK’S “economic engine” mid-sized businesses have proven more resilient to Brexit uncertainty compared to their large and small counterparts, according to new figures published today .

Data collected twelve months on from the EU referendum by accountancy and business advisor y firm BDO shows mid-sized businesses have increased overseas turnover by 11 per cent ( from £ 122 billion to £ 135bn).

By comparison, large businesses saw a contraction in overseas turnover, down 2 per cent from £ 380bn to £ 371bn, and down 11 per cent for small businesses from£12bn to £ 11bn.

These mid- sized businesses – which are typically made up from mid-market, AIM-listed and private-equity owned businesses – also led the way in terms of reported profit growth twelve months on from the Brexit referendum.

Looking at a snapshot of reported financial figures in July 2017, B DO said the mid-sized corporate sector increased profits by 22 per cent f r om £ 8 3 bn t o £ 10 3 bn, outpacing FTSE 350 firms which experienced a contraction of minus 7 per cent as profits fell from £ 108bn to £ 100bn. Small companies saw a smaller profit increase of 14 per cent from £ 15bn to £ 17bn.

Stuart Lisle, BDO partner and chair of the Brexit Taskforce, said: “Mid- market, AIM- listed and private equity owned businesses are t he unsung mid- dle of the UK economy. Too big to benefit from incentives aimed at SMES and too small to grab attention like FT SE companies, entrepreneurial mid- sized businesses fall into a policy and profile black hole.

“Yet it is these ambitious businesses that drive the economy and will have a key role to play in the success of the UK’S post- Brexit future.

“Government must now, more than ever, put the needs of these businesses at the heart of their post- Brexit planning.”

L isle called for measures to help this sector, such as creating a simplified tax system, investment in the right infrastructure projects and improving access to skills, which he said would have a “major role” in boosting opportunities.

BDO is calling for mid- sized businesses to be placed at the heart of a post-B rex it‘ new economy’ which focuses on regional balance and sustainability.

Lisle said such policies would address perceptions that the sector is “overlooked and under valued by the government”.

The CBI big business lobby group has also previously called for help for the midsized business sector.