Shares in Scottish FTSE-listed companies outperformed the wider FTSE All Share index and AIM (Alternative Investment Market) index over a 10- and 15-year period, according to analysis from Brewin Dolphin.<\/p>\n\n\n\n
The wealth manager found that AIM-listed Scottish organisations returned 242% total return1<\/sup> over a 15-year period, compared to the AIM-listed All Share average of just 12%. At the same time, all Scottish companies listed on the FTSE returned 281% compared to the FTSE All Share average of 201%.<\/p>\n\n\n\n Scottish companies which returned some of the largest gains over 15 years include FTSE-listed packaging distributor Macfarlane Group (626%), engineering company Weir Group (554%) and Irn Bru maker AG Barr (477%).<\/p>\n\n\n\n Shares in AIM-listed technology companies Iomart and Craneware and property group Sigma Capital offered the highest 10-year total returns at 756%, 751% and 704% respectively.<\/p>\n\n\n\n John Moore, senior investment manager at Brewin Dolphin, said: <\/strong>\u201cOver the longer term, Scottish companies that have performed well have consistently shown an entrepreneurial drive and ability to change which has reaped rewards in terms of wider business benefits.<\/p>\n\n\n\n \u201cOn the face of it, the likes of Weir Group, AG Barr and Macfarlane Group are not involved in typically high-growth areas, but savvy managerial decisions meant the businesses commanded a strong market share in their respective niches. Significant investment also ensured that, over time, the companies were in a strong position to successfully acquire smaller entities and command even greater market coverage.\u201d<\/p>\n\n\n\n However, despite strong long-term performance, Scottish companies on the FTSE lagged the All Share index when comparing five-year total returns. The Scottish companies returned an average of 35% while the FTSE All Share stood at 46%. AIM-listed companies performed slightly better than the average, at 47% compared to the index\u2019s 46% %, over the same five-year period.<\/p>\n\n\n\n A number of Scottish-listed FTSE companies have seen weak returns in the last five years, including sausage casings manufacturer Devro (-27%), public transport provider Stagecoach (-44%) and temporary power generator Aggreko (-35%). For many of the Scottish FTSE companies, the five-year returns show a stark contrast, compared to the 15-year outlook.<\/p>\n\n\n\n John Moore, senior investment manager at Brewin Dolphin, said: <\/strong>\u201cLooking at the past five-years, it\u2019s fair to say that the companies with poorer performance have been impacted by a range of factors, some not within their control and others because of internal issues unique to the business or sector. For investors, it reiterates the importance of having a diverse portfolio which can withstand challenges from all angles.<\/p>\n\n\n\n \u201cDevro suffered from, for want of a better expression, a degree of indigestion regarding capital expenditure and investment made in the business over the past few years. A greater focus on cost savings and reducing debt, however, should place the business on a better footing going forward.<\/p>\n\n\n\n \u201cStagecoach, meanwhile, is a business that typified entrepreneurial ambition in the mid-2000s, before the recession. However, the company has faced significant challenges of late, with the sale of its North American operation, combined with being disqualified from bidding on a number of high-value, high-profile UK rail contracts. Shares in Stagecoach hit a 10-year low in June this year2<\/sup>.<\/p>\n\n\n\n \u201cGlasgow-based power company Aggreko has suffered from a variety of external issues in the past five-year period, not limited to a downturn in US shale which had a significant impact on its petrochemical refining activity. Despite this, Aggreko appears to remain positive with upcoming projects including supplying power for the 2020 Tokyo Olympics – a key contract worth \u00a3159 million3<\/sup>.<\/p>\n\n\n\n \u201cWhile the economic environment of late has been undoubtedly challenging, the current climate could provide an opportunity for Scottish companies to take advantage once more of their entrepreneurial instincts. By rolling up their sleeves, making sound, ambitious decisions at boardroom level, and focusing on cornering the market in their respective industries, we could see more positive returns over the next 10 or 15-year periods.\u201d<\/p>\n\n\n\n – ENDS –<\/strong><\/p>\n\n\n\n Disclaimers:<\/u><\/p>\n\n\n\n PRESS INFORMATION<\/strong> Peter McFarlane\u00a0peter.mcfarlane@framecreates.co.uk<\/a>\u00a0\/ Tel. +44 (0) 141 559 5840 About Brewin Dolphin<\/strong> *as at 30th<\/sup> June 2019<\/p>\n\n\n\n www.brewin.co.uk<\/a><\/p>\n\n\n\n Scottish shares \u2013 five, 10 and 15-year total returns<\/strong><\/p>\n\n\n\n\n
For further information, please contact:<\/p>\n\n\n\n
Richard Janes\u00a0richard.janes@brewin.co.uk<\/a>\u00a0\/ Tel. +44 (0) 20 3201 3343
Anita Turland\u00a0anita.turland@brewin.co.uk<\/a>\u00a0\/ Tel. +44 (0) 20 3201 3026
Payal Nair\u00a0payal.nair@brewin.co.uk<\/a>\u00a0\/\u00a0Tel: +44 (0) 20 3201 3342<\/p>\n\n\n\n
Brewin Dolphin is a UK FTSE 250 provider of discretionary wealth management. With \u00a344.1* billion in total funds, it offers award-winning personalised wealth management services that meet the varied needs of our clients including individuals, charities and corporates.
We give clients security and wellbeing by helping them to protect and grow their wealth, in order to enrich their lives by achieving their goals and aspirations. Our services range from bespoke, discretionary investment management to retirement planning and tax-efficient investing. Our focus on discretionary investment management has led to significant growth in client funds and we now manage \u00a339.1* billion on a discretionary basis.
Our intermediary business manages over \u00a313* billion of assets for over 1,700 advice firms either on a discretionary basis or via our\u00a0Managed Portfolio Service<\/a>.
In line with the premium we place on personal relationships, we\u2019ve built a network of 31 offices across the UK, Jersey and Dublin, staffed by qualified investment managers and financial planners. We are committed to the most exacting standards of client service, with long-term thinking and absolute focus on our clients’ needs at the core.<\/p>\n\n\n\n