Small and mid-sized quoted companies are a unique segment of businesses that make a valuable contribution in the UK.
A new report written by Hardman & Co in cooperation with the QCA shows that small and mid-sized quoted companies:
- Account for 93% of all companies on UK public equity markets, but just 20% of market capitalisation.
- Employ over 3 million people - an estimated 11% of total UK private sector employment
- Contribute over £26bn in taxes - about 5% of total UK tax take
Gulf in size between the biggest 100 companies and the rest
As of end of February 2019, London Stock Exchange had a total of 2,068 companies listed on its markets (the Main Market and AIM).
However, this includes investment companies and international companies whose London quote is a secondary one. Filtering these out leaves 1,349 companies.
Of these, the largest 100 companies account for 80% of total market capitalisation, the other 1,249 small and mid-sized quoted companies account for the remaining 20%.
This highlights the vast difference in size between the largest 100 quoted companies in the UK and the 1000+ small and mid-caps.
These small and mid-size quoted companies that make up the majority of the UK's public equity markets are disproportionately impacted by regulatory change as they lack the resources of the largest companies.
Also included in the report is the regional breakdown of where small and mid-caps provide employment in the UK.