10 Fastest Growing Companies in the North East of the UK
Sarah Cheesman, 04 January 2024
In the vibrant and ever-evolving business landscape of the UK, the North East region stands out as a hub of innovation, entrepreneurship, and economic growth. Nestled between the picturesque landscapes of Northumberland, the industrial heartlands of County Durham, and the bustling urban centres of Tyne and Wear, the North East boasts a dynamic business environment home to some of the nation’s most rapidly expanding enterprises.
As we navigate through an era of unprecedented change and opportunity, it’s essential to spotlight the companies that are not only keeping pace but surging ahead, reshaping industries, and contributing to the region’s economic prosperity. In this article, we’re looking at the top ten companies leading the way and inspiring growth and change in the North East region.
While there are many different ways to measure company growth, we’re focusing on the UK startups that saw the greatest turnover growth between 2021 and 2022. Each company on this ranking has met the following criteria:
- A private company headquartered in the United Kingdom
- Head office based in the North East of the UK
- Operating at the Seed, Venture or Growth stage of evolution
- Has raised equity funding
- Has comparable accounting periods between 2021 and 2022
- Reported a turnover of at least £100k in 2021
10 Fastest Growing Companies in the North East of the UK
We’ve ordered our companies from 10 to one.
10.
Hook Pictures
Sector: Digital Media Production
Location: Newcastle upon Tyne
Growth in turnover (2021-2022): 27%
Hook Pictures operates a film, TV, and digital media production company in Newcastle upon Tyne. They were incorporated in September 2012, and have seen one round of equity fundraising. This was completed in July 2014, with undisclosed investors investing £150k for a 22.5% stake in the business. Their post-money valuation at the time was listed as £667k.
They have seen a 27% growth in turnover between 2021-2022 and are currently at seed stage.
09.
Total Resources
Sector: Logistics
Location: South Tyneside
Growth in turnover (2021-2022): 42%
Total Resources provides a range of road management services, including signage and temporary traffic lights. To date, they have raised funds for two equity and loan fundraising rounds. The first of these was in May 2019, through Enterprise Ventures Growth Funding, Enterprise Ventures SME Loans, North East Venture Fund and other undisclosed investors.
The most recent fundraising round was completed in February 2023 for £411k. This was again through Enterprise Ventures Growth Funding. Total Resources had a 42% growth in their turnover between 2021-2022.
08.
iamproperty
Sector: Property
Location: Newcastle upon Tyne
Growth in turnover (2021-2022): 45%
iamproperty operates multiple brands, offering a range of software and professional services to businesses in the property sector, including IAM Sold, which offers property auctioning services, and The Conveyancing Partnership, which provides conveyancing services. They saw a 45% increase in their turnover between 2021 and 2022.
Since their establishment in December 2009, they have secured £559k through one round of fundraising in February 2019. This was through Lloyds Development Capital (LDC). The purpose of this investment was to accelerate growth, and as part of the deal, Mark Goddard joined the business as Group Chairman. They also acquired VTUK in March 2022, a company that developed cloud-based software solutions for estate agencies.
07.
Communication Technology
Sector: IT Telecommunications
Location: Billingham
Growth in turnover (2021-2022): 52%
At seventh on the list is Communication Technology, an IT telecommunication service specialising in providing products to business parks. The business was started in 2011, and over this time they have completed 11 rounds of fundraising, totalling £4.62m. The most recent round was in March 2022, where they gave away a 7.8% stake in the business for £296k. Their post-money valuation was £3.79m.
They have also made three acquisitions in their time, namely Zencom Telecommunications in June 2022, Landscape Networks in May 2017, and Touchdown Offices in June 2016. They saw a 52% growth in turnover between 2021 and 2022.
06.
Cleveland Group
Sector: Distribution
Location: Stockton-on-Tees
Growth in turnover (2021-2022): 65%
Cleveland Group is a family-run business that sells and leases new and used shipping containers, and also provides a range of modular building units. They have come in at sixth on our list with an impressive 65% growth in turnover between 2021 and 2022.
They were incorporated in February 2011 and have so far completed one round of equity fundraising. This was for an undisclosed amount, raised through Lloyds Development Capital (LDC). The aim of this round of funding was to help Cleveland Group expand their workforce and increase its sales and rental offerings.
05.
The Tanning Shop
Sector: Beauty / Retail
Location: Newcastle upon Tyne
Growth in turnover (2021-2022): 67%
The Tanning Shop operates a number of tanning facilities and also offers a rental service for tanning technology. It was incorporated in July 2006 and has since only completed one round of fundraising. This was in February 2018—an equity and loan investment from Flexible Business Loan and Perwyn Growth Capital.
This company is currently at the growth stage and its ultimate parent company is The Feel Good Group (Holdings) Limited. They saw 67% growth in their turnover between 2021 and 2022.
04.
FOOTY.COM
Sector: Financial Services
Location: Redcar
Growth in turnover (2021-2022): 131%
FOOTY.COM operates an online price comparison website for football merchandise, and has partnered with some of the world’s most trusted sportswear brands and retailers since 2015. They have taken the fourth spot on our list, with a huge 131% growth in turnover between 2021 and 2022.
They have received £2.52m in fundraisings to date, with the most recent being a round of equity fundraising from the North East Innovation Fund. This was confirmed at £800k for a 16% stake in the business. Their post-money valuation was listed as £5.01m. They also received a grant from Innovate UK in February 2020 for an undisclosed amount.
03.
Demuris
Sector: Biotechnology
Location: Newcastle upon Tyne
Growth in turnover (2021-2022): 455%
Demuris develops antibiotics that aim to combat the threat of emerging diseases and the rise of antibiotic resistance. To date, they have secured three rounds of fundraising, totalling £246k. The most recent of these was equity fundraising of £24.6k for a 0.3% stake in August 2021, raised through undisclosed investors. Their post-money valuation was £7.71m.
They have also received £1.74m through 11 grants, including a £72.3k grant through Innovate UK in January 2021. Demuris is a spinout company from Newcastle University.
02.
QuantuMDx
Sector: Medical Technology
Location: Newcastle upon Tyne
Growth in turnover (2021-2022): 644%
In second place, with a 644% growth in turnover between 2021 and 2022, is QuantuMDx. This company develops molecular diagnostic medical devices, such as Q-POC, a portable diagnostics laboratory designed to provide rapid testing via DNA analysis. The company was incorporated in March 2009, and has since received £81.2m in fundraising and £19.8m in grants. Their most recent round of equity fundraising was for a 5.5% stake in the business, received through undisclosed investors. Their post-money valuation was £155m.
They also acquired NorthGene, a company that provides DNA, gene and alcohol testing services, in March 2013. Their most recent grant was received through the Department for International Development in June 2020 for the purpose of manufacturing Q-POC devices. This grant was for £16m.
01.
Advanced Electric Machines
Sector: Manufacturing
Location: Stockton-on-Tees
Growth in turnover (2021-2022): 1,225%
Advanced Electric Machines is at the top of our list with a huge growth in turnover of 1,225%. . This company manufactures motors designed for low carbon commercial vehicles. With such a focus on this area of the market in recent years, it’s no wonder they’re in a period of high-growth.
Since it was established in November 2016, they have completed five rounds of fundraising, bringing in a total of £7.57m to date. The most recent of these was equity fundraising for a 13.9% stake in the business. This was completed in December 2022 for a total of £4.97m through undisclosed investors. The post-money valuation of this company at the time was £35.7m. They have also received £7.8m through 18 grants, including a £1.17m grant in March 2022 through Innovate UK.
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