Research by The Share Centre has shown that UK listed companies produced record profits in the first quarter of 2018, with an all time high of £153.8 billion in profit and a three year high of £1.33 trillion in sales being recorded.
The favourable exchange rate due to the uncertainty surrounding brexit in conjunction with the improving global economic climate have been to the benefit of UK based global businesses.
Mining and Oil sectors were some of the star sectors in terms of profit margins. Four fifths of sectors generated increased profits, even those that are known to be sensitive on a domestic basis.
Helal Miah of The Share Centre says:
"UK plc has delivered the strongest set of results in years, extending a period of growth not seen since the recovery in the immediate aftermath of the recession and financial crisis."
Helal says however, the recovery in the value of the pound could put a dent in future profits:
"In the year ahead, the global economy will provide an even more supportive backdrop, though it may be hard to top the latest record profit. The pound is stronger now against the dollar, which will create a headwind for revenues and profits translated back into sterling."
By expanding abroad, UK businesses are able to mitigate the effects of the UK's sluggish consumer confidence and domestic growth.
The Office of National Statistics figures paint a gloomy picture domestically with growth of only 0.1% in the first quarter of 2018.
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The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.
Past performance is not a reliable indicator of future performance.
UK profits hit fresh record high