The Office for National Statistics published its quarterly review of Profitability of UK Companies for Q4 2012. The headline points are listed below. An interesting point from the stats from a non-accountant view-point is why gross profit and Net profit numbers are much the same for some groups of companies. Service companies even have a higher gross profit than net profit. This would suggest that, overall, there is zero tax being received by that group of companies. It would be interesting to see that list broken down into the tax payers and non taxpayers!
Manufacturing still looks the poor man and continues to need to develop and grow. A strong Manufacturing sector, in my opinion, will be driving force for recovery and growth.
See the full ONS report here.
- Private non-financial corporations’ profitability, as measured by their net rate of return, was estimated at 11.5% (11.5% gross)in quarter four 2012, slightly lower than the typical level experienced in the last two years.
- Manufacturing companies’ net rate of return was estimated at 4.9% (6.4% gross) in quarter four 2012, continuing the relatively low picture of the last year.
- Service companies’ net rate of return was estimated at 15.9% (15.7% gross) in quarter four 2012, lower than the previous quarter but similar to the typical levels experienced in the last two years.
- UK Continental Shelf (UKCS) companies’ net rate of return was 31.1% (19.4% gross)in quarter four 2012, continuing the decline in the rate of return over the last year.
- Non-UKCS companies’ net rate of return was 11.1% (11.1% gross) in quarter four 2012, a very similar value to the levels seen in the last three years.