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FT 1000: the sixth annual list of Europe’s fastest-growing companies

This latest FT Statista ranking of fast-growing European companies illustrates the changing fortunes of some sectors since the Covid pandemic in 2020.

The companies that made the final cut were sufficiently resilient – and in some cases fortunate – to weather a slump in demand caused by coronavirus restrictions, trade tensions stemming from Brexit and a protracted bottleneck in the global supply chain.

This feat and a growing optimism in a few quarters about the global economy, many business leaders say they expect better performance in the coming year – despite the new risks posed by increasing labor shortages inflationRussia’s invasion of Ukraine and skyrocket energy prices.

Deloitte research in January showed that many UK business leaders planned to increase investment this year in anticipation of strong UK and global demand for their companies’ goods and services. And London’s tech startups picked up a record $25.5 billion venture capital investments more than doubled last year compared to 2020.

An in-depth FT special report on this sixth annual FT 1000 list, to be published on March 21, will analyze how the current economic threats could once again change the fate of companies and assess which sectors are poised for an ‘Omicron Bounce’, since the risks posed by the variant are reduced.

The ranking, produced with Statista, a research firm, lists the European companies that achieved the highest compound annual sales growth rate between 2017 and 2020. The minimum CAGR required to compile the list was 36.5 percent – a notch above the 35.5 percent needed for last year’s ranking.

The full report, including case studies and analysis, will be published in print and online on March 21

Alluding to the circular economy, Swappie, a Finland-based marketplace for refurbished smartphones, ousted Bulb Energy from the top spot this year with a CAGR of 477 percent. Bulb, the UK’s seventh-largest energy company, went into “special administration” in November when its risky hedging strategy to manage energy market volatility led to it collapse — and forced the UK government to prop it up with a taxpayer-funded loan.

Kilo Health, a Lithuanian digital health company, ranks second this year with a compound annual return on sales of 450 percent for 2017-20. Kilo is followed by OCI Group, a UK-based supply chain procurement firm – which returned a CAGR of 409.6 per cent over the same period – and only fansthe UK-based digital platform best known for selling user-generated pornography to subscribers.

As in the previous year, the top 10 are made up of newcomers to the ranking list. But in total there are 306 companies in the list, which also appeared in the previous edition. A total of 117 companies have won a place in the ranking for three consecutive years.

The industry mix this year is broadly in line with the 2021 ranking: technology leads with a fifth of the companies on the list, followed by construction and retail. However, retail has increased its share in the ranking from just under 6 percent in the previous year to 8.6 percent.

Italy is the country with the most entries on the list with 235. Germany is second with 194, followed by the UK with 155. Like last year, London is the city with the most fast-growing companies (81). followed by Paris (34) and Milan (33).

Scroll to the bottom of the interactive table to view the full methodology.

*Companies marked with an asterisk had less than 12 months of revenue in fiscal 2017 but still exceeded the €100,000 revenue threshold.
** Companies marked with a double asterisk have been acquired since the end of the relevant period.

methodology

The FT 1000: Europe’s Fastest Growing Companies is a list of the 1,000 largest companies in Europe that achieved the highest percentage revenue growth between 2017 and 2020.

The ranking of the FT 1000 was created in a complex process. Although the search was very extensive, the ranking does not claim to be complete, as some companies did not want to make their figures public or did not participate for other reasons.

The project was promoted online and in print, allowing all eligible companies to register through the websites created by Statista and the Financial Times. In addition, by researching company databases and other public sources, Statista has identified tens of thousands of companies in Europe as potential candidates for the FT 1000 ranking. These companies were invited to participate in the competition by post, email and telephone. The application period ran from October 1, 2021 to December 31, 2021.

The sales figures submitted had to be confirmed by the company’s CEO, CFO or a member of the company’s board of directors. Companies with three or fewer employees or companies that are not legal entities have been subjected to additional checks to verify their turnover figures.

Criteria for inclusion in the list

To be included in the list of the fastest growing companies in Europe, a company had to meet the following criteria:

• Turnover of at least €100,000 in 2017 (or currency equivalent to the average for the current financial year).

• Revenue of at least €1.5 million generated in 2020 (or currency value corresponding to the average for the current financial year).

• An independent company (the company is not a subsidiary or branch of any kind).

• Sales growth between 2017 and 2020 that was mainly organic (ie “internally” stimulated).

• If listed, a share price that has not fallen by 50 percent or more since 2019.

Companies from these countries were eligible to participate: Austria, Belgium, Bosnia & Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom.

Calculation of growth rates

The company growth rates were calculated on the basis of the sales figures submitted by the companies in the respective national currency. For better comparability in the ranking, the sales figures were converted into euros. The average exchange rate for the financial year specified by the company was used.

The compound annual growth rate (CAGR) was calculated as follows:
((Sales2020 / Sales2017)^(1/3)) — 1 = CAGR

The absolute growth between 2017 and 2020 was calculated as follows:
(sales2020 / sales2017) — 1 = growth rate

Evaluation and Quality Assurance

All data reported by the companies was processed and checked by Statista. Missing data entries (employee numbers, address data, etc.) were researched in detail. Companies that did not meet the criteria for inclusion in the ranking were deleted. The required minimum average growth rate to be included in the ranking this year was 36.5 percent.

FT 1000: the sixth annual list of Europe’s fastest-growing companies Source link FT 1000: the sixth annual list of Europe’s fastest-growing companies

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