UK's companies top European wealth-creation list

Government figures released today have shown that the UK is leading Europe in a list of top wealth-creating companies.

The Department of Trade and Industry's 2003 Value Added Scoreboard published today has revealed that, despite "difficult economic conditions", 56 out of the top 100 UK companies successfully increased their wealth compared to 48 of the top 100 European companies.

Trade and Industry Secretary Patricia Hewitt said: "There is little doubt that companies in Britain and across Europe face tough times, but the fact that British companies continue to dominate this important list offers some comfort

"The figures shows that the most successful companies are the ones who are investing heavily in R&D and capital equipment."

The Value Added Scoreboard ranks companies by value added, and also gives details of sales, profits, productivity and efficiency, cost of funds and investment in R&D and Capex. It has been expanded this year to cover the top 600 European companies by value added and the top 800 from the UK, all classified by FTSE sector.

The UK was found to have more companies - just under 30% - than any other country listed in a new league table of Europe's top 600 wealth creating companies.

The findings of the Scoreboard indicate that last year was difficult for companies in Europe, with operating profits for the European 600 (178 of which were from the UK) falling by an average of 35%.

Of the companies that managed to generate above sector average value added given the resources of labour and equipment used, 70% shared a common characteristic - investment in the future – with above average R&D investment intensity or capital equipment backing up each employee or both.

(GMcG)