The Sunday Times February 10, 2019 3

INTERNATIONAL TRACK 200

Cult Wines (No 73) has focused on expansion in Asia, with offices in Hong Kong and China, its top overseas markets. Co-founder Tom Gearing told me China was a target market due to a significant increase in demand for fine wine, alongside favourable

and fashion have proved an area of success for the International Track 200 companies, with China being the second-largest overseas market for the health and beauty websites of The Hut Group (No 63). It makes more than 10% of its £736m total sales there.

The dynamism is something to behold. I learnt of one business owner who had built a huge manufacturing plant in just two years.

They also love British brands in China, with our goods regarded as being well made and genuine. Beauty

To succeed in the future, international companies cannot ignore selling to China. It is no longer just the world’s factory; now the country’s fast-growing consumer market is forcing businesses to evaluate how and what they sell into the country.

China is the sixth most popular country for overseas sales among the International Track 200 companies, with 44 firms citing it as an important market. It is also the second choice identified for future growth, with 63 companies

British companies hear the great call of Chinaplanning to expand there. This compares favourably to the result of HSBC’s Navigator: Made for China global survey.

Our survey discovered that just 10% of UK companies consider China to be among their top three future export markets, compared with 15% of companies globally. We do not want to see British businesses losing out to global competitors.

It is the 10th anniversaryof the International Track 200 table, and is remarkable over that time to witness the growth in the Far East. In the first International Track in 2010, Noel Quinn, now HSBC’s global chief executive of commercial banking, wrote about the opportunities presented by eastern markets.

He specifically warned that many businesses were looking eastwards only for low-cost labour and production, and that they should be building long-term and meaningful relationships

beyond the outsourcing boom. Noel’s prophetic advice of a decade ago is just as relevant today.

We understand some of the challenges of selling into China. Companies may feel they have to master the whole of the country, which makes starting out seem too daunting for many. However, firms need only enter one province to enjoy success, and there are some high-growth regions that offer fantastic opportunities.

For example, the Pearl River Delta region — the world’s largest urban area in both size and population — in Guangdong province, is a centre for high-tech manufacturing, services and exports.

If you want to understandChina, you must visit it — it is a trip I recommend to every business leader, and one I undertook myself last year. It was eye-opening. I have never returned from a country so excited by the prospects for business there.

UK companies trying to grow in China face three major challenges: complying with local regulations, building brand awareness and adapting to Chinese tastes. Some International Track 200 companies have found smart ways to localise their appeal, as retailer Mountain Warehouse (No 74) demonstrated when it timed its 2015 launch in China for Singles’ Day — the country’s biggest online shopping day. Our focus is to provide that local expertise and to make life as easy as possible for UK businesses operating in China.

The country has played avital role in the success of the International Track 200 companies over the league table’s 10 years. We expect that in the coming decade, the success of UK exporters will increasingly be influenced by their growth in Asia.

Jane Galvin is head of corporate banking, HSBC UK

Firms on the league table are capitalising on Chinese shoppers’ love of UK brands

socio-economic factors such as a growing middle class, huge urbanisation and wealth creation.

“The most important lessons I have learnt about operating in China is that relationships are everything, nothing is easy, patience is the key to success and when you feel discouraged, it is important to remember that everything is possible,” Gearing said.

The sheer volume of people in China — in excess of 1.4bn overall; more than 160 cities have a population of more than 1m — means there are opportunities to get brands in front of large numbers of people. Queuing systems are everywhere, including at bus stops, presenting a great opportunity for advertising to raise brand awareness. In my experience, English is widely spoken by business people, so language is unlikely to be a barrier to success.

Our Navigator: Made for China report found that

JANE GALVIN HSBC UK

Tom Gearing of Cult Wines (No 73) is raising a glass to expansion into Asian markets

6 Saville Group 166.04%Audiovisual equipment supplierChemist John Saville founded this York-based company in 1876 to develop photographs. Now run by joint managing directors Andy Dyson, 49, and Colin Nixey, 56, it has evolved into an audiovisual technology specialist with two brands. Sparq produces live events, such as conferences and product launches, while Visavvi installs video conferencing technology for corporate clients needing to communicate between international offices. Overseas sales hit £4m in 2017.

7 High Street TV 164.72%Television shopping channelThis company, based in Harrogate, north Yorkshire, was founded in 2008 by serial entrepreneurs Andrew Malcher, 48, and Jim Coleman, 50, after they saw the success of shopping channels in America. It sells own-brand and branded household goods and gifts on its TV channels, as well as over the phone, online and through retailers. Overseas sales hit £16.3m in 2018, boosted by growth in Japan, where its Pressure King Pro pressure cooker and Squat Magic fitness machine have proved popular.

8 Carrs Foods 158.73%Bakery products providerThis Manchester company supplies more than 200m bakery products a year. Its brands include Paul Hollywood ready-to-bake rolls and the St Pierre range of brioches, croissants and crepes. Exports hit £19m in 2017, boosted by strong growth in its American market. Managing director Jeremy Gilboy, 60, and international director Paul Baker, 49, led a buyout of Carrs in 2004.

9 Crep Protect 151.80%Footwear accessories developerProtection spray, cleaning kits, wipes and scuff erasers are among the products manufactured and sold by this west London company to “sneakerheadz” wanting to care for their trainers. Founded in 2012 by brothers Rizwan, 40, Imran, 37, and Nohman Ahmed, 31, its products are sold in 52 countries. In 2018, exports hit £20.2m and the company secured a worldwide licence for Adidas shoe care.

10 Opus Talent Solutions 151.64%Recruitment consultancyFounded in 2008 by Darren Ryemill, 42, this Bristol recruitment consultancy operates across sectors such as IT, engineering and architecture. Its divisions include JD Ross Energy and Hinton Spencer, which works for design and architecture clients. A quarter of its employees are based in Australia, Asia and America, helping overseas sales hit £26.1m in 2017. Amy Golding, 33, took over as chief executive last January.

11 AerFin 146.81%Aircraft and spares servicesIndustry veteran Bob James, 55, was awarded an OBE last year for services to exports in the aerospace industry. He founded the Caerphilly-based AerFin in 2010, and the company has since spent more than £100m buying old aircraft, engines and spare parts, which it recycles and sells, or leases to the likes of Lufthansa and Philippine Airlines. Exports to 60 countries lifted international sales to £58.6m in 2017.

12 TransferWise 141.64%Currency-transfer providerTransferWise’s platform bypasses the traditional international bank-payments system. This means lower fees for its 4m customers, who transfer £3bn a month. The London company’s partnerships include one with France’s second-biggest bank, BPCE. In 2017, it was reportedly valued at about $1.6bn (£1.2bn) when it raised $280m (£220m) from investors to fuel expansion in the Asia Pacific region. Overseas sales hit £83.5m last year, under co-founders Taavet Hinrikus, 37, and Kristo Kaarmann, 38.

13 The&Partnership 134.45%Advertising agencyThis communications and advertising group manages campaigns for clients such as Toyota and McVitie’s. Co-founded in 2013 by chairman Johnny

Hornby, 51, The&Partnership is backed by the advertising giant WPP. Spanning three continents, with offices in 19 cities, including New York and Toronto, the London-based company doubled in size in 2017 by embedding agencies within clients’ offices. Overseas turnover reached £187.9m that year, lifted by winning Toyota’s European contract.

14 Salt 133.19%Recruitment consultancyFounded in 2009 by Paul Gardiner, 43, and Marco Schiavo, 38, this London-based recruitment agency serves global customers such as Amazon, Vodafone and IBM. It has expanded into Sydney, New York and Dubai in the past five years, and merged with a New Zealand recruitment business in 2016. The company now operates in eight locations around the world. Overseas sales hit £10.9m in 2017, under chief executive Elliot Dell, 40.

15 Sigma Sports 130.62%Sports goods retailerLaunched in 1992 by Ian Whittingham, 47, and Jason Turner, 47, this Surrey-based retailer sells cycle and triathlon gear, mostly online. Sigma Sports sold a 50% stake to sportswear firm Bradshaw Taylor in 2009 and last year opened a 30,000 sq ft distribution warehouse in Lincolnshire. Exports reached £4.5m in 2018, boosted by Sigma’s new brand ambassador Matt Stephens, the former national road cycling champion.

16 John Good 125.22%Logistics services providerThis family-owned firm began life as a shipping agent in 1833. With offices in UK ports, John Good now helps customers transport goods — including chemicals, cars and food — all over the world by air, sea and road. The group, which has a base in Hull, also offers port agency services, warehousing and distribution, and corporate travel. Its international operation in Turkey helped overseas sales reach £13m in 2017, under managing director Alan Platt, 49.

17 VSI Group 121.69%Language services providerVSI translates, dubs and provides subtitles for films and television series,

working for clients such as the BBC, Nickelodeon and major streaming platforms. The London company has 22 facilities worldwide, with locations including Los Angeles, Paris and Berlin, and works in more than 50 languages. Managing director Norman Dawood, 61, founded VSI in 1989 and oversaw international sales of £32.4m in 2017.

18 The Watches of Switzerland Group 120.31%Jewellery and watch retailerThis Leicester-headquartered jewellery group is one of the world’s largest distributors of luxury watches. It owns Goldsmiths, Mappin & Webb and Watches of Switzerland in the UK and is expanding across America with the backing of private equity firm Apollo. In 2017, it bought the US chain Mayors Jewelers for $105m (£80m), which boosted overseas sales to £133m in 2018. Chief executive Brian Duffy, 64, changed the group’s name from Aurum Holdings last year in preparation for a potential stock market float.

19 Dextra Group 117.13%LED lighting manufacturerThis Dorset manufacturer was founded in 1978 by the former Porsche racing driver Rupert Martin, 69. Dextra now puts as many as 100m LED chips a year in its products and offers bespoke design services and energy-saving control systems for the retail, hospital and education sectors. It has invested more than £12m in its facilities in Dorset since 2014, and has its own delivery fleet. Exports to Europe hit £3.7m in 2017.

20 Sigma Retail Solutions 116.01%Retail services providerThis shopfitting and retail display firm has partnerships with retailers such as Target, Kmart and Foot Locker. Based in Castleford, west Yorkshire, Sigma also has offices in Australia and China, and overseas sales reached £7.5m in 2017. Last year, Craig Bennett, 41, took over as chief executive from founder Jonathan Haigh, 44, and private equity firm Three Hills Capital Partners invested an undisclosed sum to drive growth.

FTSE 100 companies, into markets such as America, the Middle East and South Africa, and helping clients with operations in India boosted overseas sales to £3m in 2017. Managing director Terry Holland, 52, heads the business.

25 Ceuta Group 103.24%Sales and marketing agencyFounded 25 years ago by Edwin Bessant, 65, and Annette D’Abreo, 56, Ceuta provides sales, marketing and consultancy services to the health, beauty and grocery sectors. It works with brands such as Nestlé, Unilever and HRA Pharma, and has a network of distributors across more than 100 countries. The Bournemouth company has made eight acquisitions in the past four years with the backing of its majority owner, the private equity firm Juggernaut Capital, helping international sales surge to £39.1m in 2018.

26 Ogury 102.88%Mobile data marketingThis north London business has access to data from more than 400m mobile phone users in 120 countries, helping marketers identify and connect with their ideal audiences, while app publishers gain an insight into the use of their products. Founded in 2014 by Jean Canzoneri, 35, and Thomas Pasquet, 37, Ogury has 10 American and European offices, and clients include Amazon, Coca-Cola and Ford. International sales hit £26.4m in 2017.

27 Arlington Industries Group 102.61%Components supplierThis Manchester-based group designs and makes parts for manufacturers in the automotive and aerospace industries. Its factories in Britain, France and Slovakia, alongside joint ventures in China, India and Turkey, supply customers such as Ford, Nissan and Jaguar Land Rover. Overseas sales hit £58.7m last year, boosted by acquisitions including the 2017 purchase of car parts supplier Magal Engineering. Arlington is led by chairman Kevin Morley, 68, and chief executive Mark Franckel, 56. The company is majority-owned by American private equity firm Cartesian Capital.

28 The Instant Group 102.11%Outsourced office supplierThis London-based company helps businesses such as Amazon and American Express cut costs and increase flexibility by organising managed office space worldwide. It also runs a listings website for flexible office space, co-working and serviced offices in locations around the world. Overseas turnover, which includes some rental income, reached £14.8m in 2018. Last June, private equity firm Bowmark Capital invested an undisclosed sum to drive overseas growth under chief executive Tim Rodber, 49, the former England rugby union international.

Shoppers in China are increasingly fond of British brands, prompting companies such as Sigma Retail Solutions (No 20) to open offices there

21 iwoca 115.77%Business finance providerThis London-based company says it has funded more than 21,500 small businesses across Europe, using data such as cash-flow forecasts to assess risk profiles. It has raised £119.3m in funding to date. International sales, which are made up of interest and fee payments, grew to £2.8m in 2017, helped by offices in Germany, Spain and Poland. It is led by co-founders Christoph Rieche, 39, and James Dear, 38.

22 Jupiter Group 107.23%Fruit grower and exporterManaging director Mark Tweddle, 41, started this Shropshire firm in 2003. An agriculture student who worked with livestock, he turned his attention to produce after working on a lettuce farm as a holiday job. Jupiter grows, buys and distributes fruit, and has overseas sales and procurement offices from Argentina to India. Last year exports hit £11m and

the company acquired the South African fresh produce company Bonaire.

23 Thumbs Up 105.98%Lifestyle products wholesalerLlama teapots, inflatable Christmas trees and gin baubles are some of the quirky products developed by this London company. It sells technology, home and party items under licence from brands such as Fast & Furious and tokidoki. Customers include international retailers such as American chain Nordstrom, helping overseas sales hit £19.1m in 2017. Chief executive Sundip Patel, 47, heads the business he co-founded in 2004.

24 Project One 105.88%Business consultancyThis Cheshire-based firm says its management consultants typically have more than 20 years’ experience. Project One has expanded by following customers, including global banks and

Annette D’Abreo and Edwin Bessant, founders of Ceuta Group (No 25), whose international sales hit £39.1m last year

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