British business faces big challenges to its sustainable future, according to WHEB Partner and Fund Manager Ted Franks.
A culture that doesn’t nurture mid-sized companies, a weak manufacturing sector and chaos surrounding Brexit are among those challenges, Franks argued.
Noting that American-multinational Boston Scientific purchased British Technology Group, or BTG, in November – earning WHEB a 36 percent gain in volume-weighted average purchase price – Franks said the sale represented yet another great British company losing its independence.
“We made a tidy short-term profit as investors,” Franks wrote in a recent analysis. “But…we lost another of the compelling impact opportunities in the UK market.”
The loss of BTG encapsulates the challenges facing Britain, Franks wrote. It didn’t grow large enough to stave off a buyer. Britain is now losing a maker of high-tech products. And given the chaos resulting from the country’s exit from the European Union, there is little chance other companies will replace it anytime soon.
But other British companies hold promise to counteract the trends, wrote Franks, who cited inspection company Intertek, precision manufacturers Renishaw and Spectris as firms in WHEB’s portfolio that are helping to address sustainability worldwide.
He hoped they might flourish once Brexit is finally resolved.
“The words ‘hopeful’ and ‘Brexit’ are not easy bedfellows,” wrote Franks. “But the reason for hope is that the uncertainty of Brexit will end at some point. UK entrepreneurs and investors will have some visibility again.”