Bristol-based chemicals and gasses distributor A-Gas International has again made it into a league table of Britain’s fast-growing private businesses.
The firm appears at number 56 in the Sunday Times Deloitte Buyout Track 100 ranking of Britain’s 100 private equity backed companies with the fastest-growing profits over the last two years.
Under chairman John Rutley, A-Gas’ profits have grown an average 37% a year over the last two years to £13.1m in 2011 as a result of expanding into new markets both organically and by acquisition. Despite its growth it has slipped slightly from its ranking last year at 50.
Venture capital firm LDC backed a buyout from Growth Capital Partners in April 2011, taking a 62% stake in a deal that valued the company at £70m.
A-Gas is one of only two South West firms in the table, which is published this weekend.
Permali Gloucester, a composites products distributor, makes its debut at 80.
Between them the two businesses employ 227 people, having added 38 jobs over the past two years.
Deloitte’s regional head of corporate finance Denis Woulfe said: “Despite the many challenges facing the UK economy, it is pleasing to see successful private-equity-backed businesses in the South West. It is clear that strong management teams supported by private-equity investors can deliver above average performance which in turn makes them attractive merger and acquisition candidates.”
A-Gas and Permali appear in the table alongside such well-known names as lingerie retailer Agent Provocateur, owned by 3i; upmarket Wellington boot maker Hunter, owned by Searchlight Capital Partners; fashion retailer Jack Wills, backed by Inflexion; and restaurant operator YO! Sushi, owned by Quilvest.
Despite tough economic conditions, the 100 companies in the table have grown their profits by an average 51% a year over the past two years to combined profits of £1.3bn. Over the same period, they added 22,731 staff, to reach a total of 91,577.
The companies attribute their profit growth to three main reasons: 52 companies cited new client wins; 42 companies said development of new products and services; and 39 reported that expansion overseas had driven their growth.
However, the increase in profits is tempered by the high level of debt owed by many of the companies on the table. They have average debts of £50m, equivalent to four times profits.
In terms of sectors on the league table, there are 61 service companies; and manufacturing showed an increase this year, with a total of 25 companies, up from 14 on last year’s table.
