The stock market turbulence following the EU referendum has
impacted on North West listed companies, with the total market
capitalisation falling by £1.4bn.
The latest Deloitte North West Share Index reveals that total
market capitalisations fell from £36.2bn to £34.8bn
during the second quarter of the year.
The region's largest companies were worst hit, with the 15
North West companies listed on the FTSE250 losing a total of
Following the decision to leave the EU by the UK public, the
markets have experienced a period of uncertainty. The FTSE All
Share fell seven per cent in the first day after the referendum,
while the pound hit a 31-year low against the dollar on 6 July.
Despite this, a number of North West firms bucked the trend, and
have demonstrated the ability to trade well.
This is especially true of Warrington-based water and wastewater
services provider United Utilities, which added over £750m to
its market cap at a growth rate of more than 12 per cent.
In addition, a total of four companies, including online fashion
retailer Boohoo.com and support services
business Stobart Group, added more than £100m to their
values. Success stories like these underline the ongoing appetite
from investors for companies in the North West, despite the current
uncertain economic climate.
North West companies have continued to see a listing as a viable
route to market, with student property developer Watkin Jones
completing its £257m IPO in March.
Two weeks before the EU referendum , NorthEdge Capital-backed
Accrol Group, the Blackburn-based manufacturer of tissue products,
completed its £93m AIM IPO, including a £63.5m
fundraise from institutional investors.
There can be no doubt that the result of the referendum had a
profound initial effect on the UK's public markets, there is
still cause for optimism.
Following the first 24 hours, both the FTSE100 and FTSE All
Share have continued to recover, and currently sit higher than
immediately before the vote.
We would recommend increased levels of caution when it comes to
companies looking for routes to market, as investors typically do
not respond well to uncertainty.
However, once we navigate the traditionally tricky summer
months, there will be opportunities for strong companies looking to
list, and IPOs may return to the agenda later in the year.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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