The largest companies in Girona increase their business for the ninth consecutive year
Companies from Girona with the greater volume of business grew in terms of billing, workforce and international trade, as detailed in the latest edition of the Girona 100’s report, carried out by KPMG and the University of Girona Faculty Chamber of Family Business
The study is made up of an analysis of the macroeconomic situation based on the context of the company activity, an economic and financial analysis of the annual accountancy for 2017 of the main companies, as well as the assessment of the most up-to-date company outlook
Greater figures in billing, the workforce and exports
With the same timing as previous years, KPMG in collaboration with the University of Girona (UdG) Faculty Chamber of Family Business reported on their study on the current situation and the emerging economic and financial trends in the top companies from Girona as concerns billing and business volume.
The information presented last Thursday, July 18 in a press conference show that the economy of the Girona region is experiencing a good moment according to the managing partner of KPMG in Girona, Manel Blanco. The tenth edition of the Girona 100 study reveals the overall good health the major companies of this particular geographical location can proudly boast.
A part of the study focused on the analysis of the 2017 annual accounts for the top companies in terms of volume, whose data was extracted using the Mercantile Registry as well as SABI (the database “System of Analysis of Iberian Balances”)
Companies in Girona grow their businesses by 6,33% alongside an increase in profitability for the ninth year in a row The margins have improved and the profit before taxes is now at 4,96%.
Strongly stand behind digitalization of businesses
To maintain the excellent augmentation of billing, growth in the workforce and exportation, companies should enthusiastically endorse the digitalization of their business since it will be critical in the development of a strategy to keep the level of competitiveness up, assured Manel Blanco
Another part of the study contemplates the qualitative side. In a survey about business perspectives with the participation of company managers, an assessment and rating of the main external and internal variables which play a part on a strong development of the company were examined.
KPMG is a global network of offices offering various professional services such as business and financial consulting, auditing and tax advising. The corporate members of KPMG are affiliated with KPMG International Cooperative, a Swiss-based company. Each corporate member is a legally separate and independent entity.
About the UdG Faculty Chamber of Family Business
This group was created on the 25th of May in 2006. Its aims are the analysis, research and education on the reality, problems and perspectives for the family business in Girona and its surroundings.
Background on the Girona 100 study
Completing the creation of the Girona 100 report involves coordinated teamwork from associated researchers from the UdG Faculty Chamber of Family Business and a team from the offices of KPMG.
This study is comprised of three parts: firstly, a macroeconomic situation based on the context of the company activity on a local, national and international level; secondly, the economic and financial analysis of the accounts and balances of the top 100 companies of that year, and thirdly, a study using survey of discussion groups dealing with the reasons for the end results achieved and the current business perspectives.
The overall perspective is rather positive which the majority of those surveyed agree on the importance of the three strength they depend on and must keep at, considering: the quality of the product and brand image, fast decision making and flexibility and taking on a new long-term strategy.
The three main strength that the companies wish to keep are:
The quality of the product and brand image
Fast decision making and flexibility
Taking on a new long-term strategy
STRENGTHSQuality of the product and brand image 31%
In regards to the problems companies must face, uncertainty arising from a sovereign process no longer appears in the top three concerns among Girona companies. Indeed, the change in responses is quite significant. In 2016, up to 30% of the managers feared that the political situation in Catalonia would have serious consequences on their businesses. In 2017, this percentage dropped to 16%. In 2018, legal and political instability barely showed up as a concern since only 6% of the offices consulted even mentioned it. On the other hand, among the primary concerns, the following are noteworthy:
The most common problems in the companies are:
The growing competence and power of the clients
The rise in cost of energy and raw materials
PROBLEMS TO TACKLEThe growing competence and power of the clients 21%
Last, but not least, to remain competitive in a global market, business owners and managers in Girona are calling for more investment incentives, lower taxation and a reduction in the bureaucracy in addition to the conversion of the current complex and strict labor agreements to a simpler and more flexible model.