Friday, March 15, 2024

FT 1000 in 2024 tracks Europe’s fastest-growing companies

Raylyst Solar, a Prague-based solar panel distributor, heads the eighth annual FT 1000 ranking with a Compound Annual Growth Rate (%) of 824.4%. The company says "We are a leading distributor of photovoltaic products for the European region. We provide the highest quality solar panels falling into the Bloomberg Tier 1 category, as well as inverters and battery systems from verified manufacturers in the market."

Adagio of France, primarily sells to the digital advertising industry. It was founded in 2012 and is ranked second with a CAGR of 582.6%, followed by an Italian digital ad agency. Bidberry has 424.4% growth.

The FT 1000 ranking produced by the German statistics firm, Statista, highlights the European companies that have grown fastest.

They rank from the highest compound annual growth rate (CAGR), in revenue from 2019 to 2022. This year, a minimum average growth rate of 36.9% is required for participation.


Ireland has not fared very well with this ranking in recent years: Bevcraft Group is at 298 in the Food & Beverages category. It is a born-in-Ireland enterprise.

Alchemy Global Solutions was founded in Kentucky, United States in 2016. The ranking is 257.

Its category is Waste Management & Recycling (The company has said "Global revenues leap to more than $440m making Alchemy the fastest growing global company in the global circular tech market.")

The head office is in Dublin for tax purposes.

MCO (MyComplianceOffice) is at 768.

It was a unit of Fidelity in the United States from 1998 and it was spinout in 2008.

It says "MCO offers a unique combination of employee surveillance, transaction monitoring, and third-party oversight, ensuring that compliance obligations are not only met but exceeded."

Headquarters are in New York, and also in Dublin, for tax purposes.

In effect, there is only one Irish entry.

These other two companies should not be included.

The criteria for inclusion  is "An independent company (not a subsidiary or branch office of any kind)."

Italy in the lead

IT and software groups have 189 entries in the FT 1000 — up from 176 last year.

European tech funding halved in 2023 and back to pre-Covid levels — however, AI was in a good position.

Atomico’s 'State of European Tech' report showed that overall funding for European venture-backed companies would decline to 45% in 2023 from a year before.

Atomico is a European Venture Capital firm headquartered in London, with offices in Paris, Berlin and Stockholm

Italy has 304 entrants; Germany 198; and France 129, accounting for 77%.

Adding Poland 44; The Netherlands 29; Spain 27; Sweden 17 and Belgium 15, results in 90%.

As for categories besides IT and software groups, Construction firms are at 92; e-commerce businesses are at 79; fintech and financial services are fourth place with 68 firms while energy and utilities are the fifth best placed, with 67 companies.

For cities, London leads with 70 firms — down from 84 in 2023; Milan is in second place with 43 firms, while Paris is at 39.

Criteria for inclusion

"Revenue of at least €100,000 generated in 2019;

Revenue of at least €1.5mn generated in 2022;

An independent company (not a subsidiary or branch office of any kind);

Revenue growth between 2019 and 2022 that was primarily organic (ie “internally” stimulated);

If listed on a stock exchange, having a share price that has not fallen 50% or more since 2022."

"Companies with headquarters in these countries were eligible to participate: Austria, Belgium, Bulgaria, Bosnia and Herzegovina, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom."

Calculation of CAGR

"The calculation of company growth rates is based on the revenue figures submitted by the companies in the respective national currency. For better comparability in the ranking, the revenue figures were converted into euros. The average exchange rate for the financial year indicated by the company was used for this purpose."

The compound annual growth rate (CAGR) was calculated as follows:

[(revenue2022 / revenue2019)^(1/3)) — 1 = CAGR The absolute growth between 2019 and 2022 was calculated as follows: (revenue2022 / revenue2019) — 1 = Growth rate"]

FT 1000: the eighth annual ranking of Europe’s fastest-growing companies


Ireland's GDP per capita in 2023 at €30,000 - Denmark at €69,000

Source dataset: prc_ppp_ind 

It's a delusion that Ireland is among the richest countries in the world, with high levels of GDP per capita.

Ignore Luxembourg (as 47% of its workforce live in other countries) and ignore Ireland as the high level of GDP per capita is explained by the presence of large multinational companies holding intellectual property and being Irish for tax purposes (e.g. Medtronic, the American firm, became Irish in 2016: It's market cap is about $113bn in US compared with the total market value of the Irish Stock Exchange of €93bn/$101bn). Employment is a plus.

Denmark (36% above the EU average), the Netherlands (30%), Austria (25%), Belgium (21%), Sweden (19%) and Germany (17%).

In contrast, Bulgaria (41% below the EU average), Slovakia (33%) and Greece (32%) registered the lowest GDP per capita.

Once 1) Retained earnings from re-domiciled firms (Irish for tax purposes) 2) Deprecation of IP (Intellectual Property) 3) Deprecation of thousands of leased aircraft and 4) Virtual (fake) Contract for Manufacturing, are purged from the National Accounts, the reality will be seen.

In GDP per capita, Ireland is under the EU average and is in a group with Italy; Cyprus; Czechia; the Baltic countries and Spain.