Companies in Australia’s mid-market sector with boardroom diversity, a dominant shareholder, or a long-serving chairperson are outperforming their peers. And those which made acquisitions for inorganic growth last year are boosting their revenues more than those that did not, but potentially squandering profit boosting synergies in the short term.
These are just some of the headline findings from KPMG Enterprise’s first ASX300+ Report, which studied the 2016 and 2015 results of Australia’s ASX300+ companies.
Each was examined to highlight the opportunities and challenges facing ASX 300+ companies.
Rob Bazzani, National Managing Partner, KPMG Enterprise commented: “The mid-market sector represents over 65 per cent of the Australian economy and is Australia’s engine room. KPMG’s Report provides an unique and accurate picture of mid-market performance. While companies in this group do not have the same degree of diversity at board and senior executive level, those that do showed better results last year then their competitors. This reinforces our view that a broader range of backgrounds adds value to businesses.”
“Another key finding is that accessing new horizons through technology is a fantastic opportunity for the mid-market. And although there are worrying levels of financial distress among the companies we surveyed, those investing and making acquisitions did notably better than their peers. There is a direct correlation between acquisition and profitability. Therefore, we would encourage businesses to remain positive and seize any opportunities available.”
KPMG Enterprise’s 2017 ASX 300+ Report analysed 664 companies, including 626 local entities and 38 foreign companies listed in Australia. The ASX300+ operate across all sectors of the economy and in all Australian states and territories.
The Report defines the ASX300+ as ASX companies by market capitalisation in June 2016 from 300-100 and does not include companies that listed or delisted from the ASX in 2016. The Report also excluded outliers in individual data sets.
National Communications Manager Enterprise
M: 0428 434 089