FTSE 250: Realising ambitions for growth

 

Assessing the prospects, challenges and choices ahead for the FTSE 250

 

March 2011

 

The FTSE 250, an often overlooked segment of the UK listed companies sector are bullish about the future, but companies face choices and challenges as they operate in an increasingly international environment.

 

 

FTSE 250 companies generate more than £200 billion of revenue a year and employ over a million and a half people. With more than 40% of the participants in our study looking to achieve double digit growth over the coming 12 months, their contribution to job creation and economic recovery is more important than ever.

 

The FTSE 250 is a very diverse group, though companies share a high level of agility, adaptability and entrepreneurial drive. These qualities will be critical in realising what are ambitious growth targets. Businesses cannot achieve the sustainable growth they aspire to by simply doing what they already do a little better.

 

As we explore in this report, FTSE 250 companies will have to find new markets, new products and new ways of differentiating themselves from their competitors.

 

Whilst they have robust balance sheets, they will also need to secure investment for long-term growth and manage what are likely to be far more complex and diverse businesses.

 

In turn, the Government and London Stock Exchange will need to continue to play their part by creating an environment that supports growth. Is there a danger that an uncertain tax and regulatory environment will encourage FTSE 250 companies to move their main centre of operations abroad and allow the benefits of their growth to bypass the UK?

 

In Realising ambitions for Growth, we examine the prospects, challenges and choices ahead for this crucial segment of the economy.