Profitability of UK Companies: January to March 2023

The latest release of data on the profitability of private non-financial corporations (PNFCs) in the UK for the first quarter of 2023 (January to March) has been announced. This statistical bulletin provides insights into the financial performance of these companies, including trends in profitability and the impact of various economic factors.

Main Points

  • The profitability of private non-financial corporations (PNFCs) experienced a slight growth of 0.1 percentage points in the first quarter of 2023 compared to the previous quarter (Q4 2022). The net rate of return on capital employed for PNFCs now stands at 9.9%.
  • However, the profitability of UK Continental Shelf (UKCS) companies faced a decline for the second consecutive quarter. This decline is attributed to the ongoing decrease in gas and crude oil prices. The net rate of return for UKCS companies was recorded at 5.7% in Q1 2023, which is a notable drop of 7 percentage points from the estimate for Q4 2022 (12.7%). This value represents the lowest point since the second quarter of 2021 (April to June).
  • On a positive note, manufacturing companies in the UK saw an increase in their net rate of return. In the first quarter of 2023, their net rate of return rose to 8.8%, up from 8.4% in the previous quarter (Q4 2022).
  • Similarly, services companies also experienced a boost in profitability. Their net rate of return stood at 16.1% in Q1 2023, showing an increase of 0.4 percentage points compared to Q4 2022 (15.7%).

These statistics provide valuable insights into the financial health of various sectors within the UK economy. The trends in profitability for different types of companies can offer a glimpse into the overall economic performance and factors affecting their operations.