Profits up for many despite the stock market gloom

Jul 15 2009 by Brian Nicholls, The Journal

James Woodrow Brewin Dolphin Investment Banking

SAGE again heads the list of profitability in 2008 – the sole North East-based constituent of the FTSE 100 index, following the loss of Northern Rock early in the year.

Of the 31 companies we have included, 19 grew their underlying pre-exceptional pretax profits in 2008 and 12 suffered significant falls in profits. This compared to only four companies’ share prices rising over the period.

Bellway suffered a profits fall as problems in the housing sector began significantly to impact on performance.

Both of the region’s transport companies grew profits with Arriva reaching £150m for the first time, while Go Ahead continued to benefit from growing rail and bus volumes.

Wellstream grew its profits through a combination of improved pricing and record volume levels due to the high oil price.

Hargreaves Services benefited from strong sales in its minerals division, combined with a strong performance from acquisitions, to grow profits 86% in 2008.

Lower down the list, Tanfield moved to a significant loss of £43.8m after being impacted heavily by both suspensions and reductions in capital expenditure by clients for powered access lifts.

New entries to the list were Animalcare, based in York, which generated a profit of £1.2m – up from £0.6m; and Vertu Motors which made a profit of £0.1m in its first year of operations.

We have removed Chieftain Group, Northern Recruitment, Metnor, Premium Bars and Restaurants and ScS Upholstery from the list, as they no longer have a stock market listing.

Any investments mentioned are for illustrative purposes only and are not intended as investment advice.