|
By UMA SHANKARI
A LOOK at Fastest Growing 50 (FG50) award winners over the past five years reveals that Singapore's fastest and most dynamic growth companies share several traits.
DP Info this year analysed the 250 companies that have made the list over the five years - and identified the most common and prevalent characteristics.
Wholesale companies lead the pack. 93 of the 250 companies were involved in the wholesale trade.
Serious growth kicks in at $10 million. The most common FG50 company was one with annual sales of between $10 million and $50 million. Fifty-two such companies made the list. In contrast, only six companies with annual sales of less than $10 million made it, suggesting companies need to reach a certain level before growth can increase exponentially.
Younger companies grow faster. Of the 250 companies, 115 were less than 10 years old, making this the most common age category in the FG50 list. But in a testament to the power of renewal, 26 companies that had been in business more than 30 years made the list in the past five years.
FG50 companies manage their credit ratings. Some 52 per cent of all FG50 companies over the past five years had investment grade DP1-4 credit ratings, showing they achieved growth without taking on excessive debt and without unnecessary risks. It also strongly suggests that companies need to manage their credit risks well to sustain growth. A further 43 per cent of companies were DP5-6 high-yield rated companies while only 5 per cent fell into the DP7-8 high-risk band.
Profitability need not be compromised for growth. While all FG50 companies are profitable, 60 per cent or 150 companies in the past five years made profits in excess of $5 million a year. A healthy 14 per cent were ultra-profitable with profits exceeding $50 million a year.
Local firms dominate. Of the 250 companies that made the list in the past five years, 166 were Singaporean. Companies from Japan were the next most represented at 13, followed by those from the US at nine.
Overseas revenue is critical. The most common trait among the 250 FG50 winners was their ability to generate revenue internationally, supporting the view that Singapore companies need to look overseas to grow. Of the 250 companies, four out of five generated revenue beyond Singapore.
|
Post Reply
1-2 of 2
