In our annual review of quoted companies making up The Journal North Index, Vinay Bedi (pictured), fund manager at Brewin Dolphin in Newcastle, discovers that the list has been badly eroded over the last 12 months.

THE turmoil suffered across world economies and markets over the last 12 months has affected all of us both within our day-to-day lives and also in terms of our outlook to the future.

It is therefore no surprise The Journal’s North Index has suffered during the period and has perhaps been through its most traumatic 12 months since its inception.

In simple terms, this time last year the number of companies represented in The Journal North Index was 37, but during 2011, this figure has dropped to 30.

Although this is disappointing and concerning, ironically, from an investor’s point of view, it actually means the year may not have been as bad as one expected. Let’s take three of the companies that have left the list – Eaga, Northumbrian Water and Wellstream.

These three have been taken over at significant premiums to their trading prices just prior to the announcement of their prospective takeovers.

What’s more, another of the stocks on the list, Opsec Security Group is also in the throes of a cash bid which has elevated its share price to the extent that it represents the biggest positive change in our list, in terms of value, for the year.

To the end of November 2011, Opsec’s market size had grown by 143% and its share price had risen by 127%.

However, the big changes of 2011 were not all good news for investors. Three of our listed companies were suspended from trading – Consolidated General Minerals was de-listed at the end of June and Tolent also lost its quote. Perhaps the biggest shock was Southern Cross Healthcare which employed over 30,000 people across the country and many thousands in the North East.

Its troubles were well documented in The Journal throughout the year but as far as investors are concerned, the story had no positive ending or indeed returns. Finally, Romag also chose to de-list in 2011.

This loss of quoted companies from The Journal North Index does have significant implications for the North East. We continually encourage North Eastern-based companies to obtain quotes on public markets and become public companies. Many people still question why it benefits the North East to have a stronger list of quoted companies based in the region?