Stock market turbulence after the EU Referendum has hit listed North West firms to the tune of £1.4bn, according to Deloitte.
This business advisory firm says the region’s total market capitalisation fell from £36.2bn to £34.8bn during the second quarter of the year.
But several businesses have been able to add value to their market cap, including utilities, transport and fashion groups.
The largest companies were worst hit by uncertainty about the future of the UK’s relationship with Europe with the 15 North West companies listed on the FTSE250 losing a total of £1.2bn.
But a number of large North West companies are demonstrating an ability to trade well despite the uncertainty, say Deloitte.
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.
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.
Chris Robertson, partner and head of plc activity at Deloitte in the North West, said: “While 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.
“In addition, success stories like those seen from United Utilities, Boohoo.com and Stobart underline the ongoing appetite from investors for companies in the North West, despite the current uncertain economic climate.
“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.”
