Fastest growing businesses revealed
By Helen Westerman | smh.com.au | 30 October
Despite growing concerns over economic growth, Australia's entrepreneurs are still extremely confident about their futures, according to an annual list of Australia's 100 fastest growing small to medium enterprises.
The BRWFast 100 list released today reports companies with fewer than 200 employees produced a total revenues of $1.7 billion, up from $1.68 billion in 2007, despite the global credit crunch and recession concerns.
Newcomer Gippsland dairy producer and powdered milk exporter, Longwarry Food Park, owned by Rakesh Aggarwal and wife Sunita, topped the list after recording 423.4% average growth over the past three years.
Longwarry Food Park is Australia's sole dairy company in private hands and the country's smallest. Last year's revenue was $41.3 million.
In second place is IT recruitment company Itcom Australia, headed by Graeme Ross, whose company reported $14.28 million in revenue and 383% growth over three years.
This was followed by David Osman's mining services company, Weldtronics in third place with 284% growth.
Kharak Bajwa's Austech Institute for Further Education was in 4th place, followed by mNet Corporation, headed by Horden Wiltshire.
The annual list features 73 newcomers, compared to 66 new companies in 2007. To appear on this year's list, companies must have achieved average turnover growth of 44.43%.
The leading industry for fast growing small to medium enterprises was information technology, with 26 companies - including three in the top 10 - followed by property and business services with 21 companies on the list and communications, with nine.
Eight publicly listed companies are listed: Ansearch, Empired, M2 Telecommunications, Q, Webjet, ISS Group, Clean TeQ aand MacarthurCook.
Seven franchises also make it - Appliance Tagging Services, Cenecrew, Ecowash Mobile, Espresso Essential, Grilll'd, Pizza Capers and Refund home Loans.
JP Morgan this week became the first financial analysts to predict Australia could officially be in recession within months.
But Fast 100 editor John Stensholt writes in BRW magazine that many on the list expected their revenue to rise during the next year, planning to hire more staff, expand overseas and invest in property and shares outside their businesses.
Big issues for 2009 remained hiring and managing quality staff and slowing economic conditions, although 30 per cent said they were seeking capital for growth.
The majority (67%) cited organic growth for their businesses, with 39% looking at mergers, acquisitions or joint ventures. Despite the turbulent sharemarket, 19% say they want to list their companies.
Seventy per cent planned to combat a slowdown by marketing more agressively, while 14% said they would reduce staff numbers and cut their own salaries. Nine per cent said they would freeze staff salaries.
According to the list, 33% of executives cited their salaries as more than $300,000. Two per cent said they earned nothing. Close to 20% of founders estimate their wealth at between $5-10 million.
Top 10 BRWFast 100 companies:
- Longwarry Food Park
- Itcom Australia
- Weldtronics
- Austech Institute for Further Education
- mNet Corporation
- Thomas Duryea Consulting
- Ansearch
- Bax Property
- The Citadel Group
- Refund home Loans
First published by Smh.com.au on October 30 2008
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