The stock market turbulence following the EU referendum has impacted on North West listed companies, with the total market capitalisation falling by £1.4bn.
The latest Deloitte North West Share Index reveals that total market capitalisations fell from £36.2bn to £34.8bn during the second quarter of the year.
The region's largest companies were worst hit, with the 15 North West companies listed on the FTSE250 losing a total of £1.2bn.
Following the decision to leave the EU by the UK public, the markets have experienced a period of uncertainty. The FTSE All Share fell seven per cent in the first day after the referendum, while the pound hit a 31-year low against the dollar on 6 July.
Despite this, a number of North West firms bucked the trend, and have demonstrated the ability to trade well.
This is especially true of Warrington-based water and wastewater services provider United Utilities, which added over £750m to its market cap at a growth rate of more than 12 per cent.
In addition, a total of four companies, including online fashion retailer Boohoo.com and support services business Stobart Group, added more than £100m to their values. Success stories like these underline the ongoing appetite from investors for companies in the North West, despite the current uncertain economic climate.
North West companies have continued to see a listing as a viable route to market, with student property developer Watkin Jones completing its £257m IPO in March.
Two weeks before the EU referendum , NorthEdge Capital-backed Accrol Group, the Blackburn-based manufacturer of tissue products, completed its £93m AIM IPO, including a £63.5m fundraise from institutional investors.
There can be no doubt that the result of the referendum had a profound initial effect on the UK's public markets, there is still cause for optimism.
Following the first 24 hours, both the FTSE100 and FTSE All Share have continued to recover, and currently sit higher than immediately before the vote.
We would recommend increased levels of caution when it comes to companies looking for routes to market, as investors typically do not respond well to uncertainty.
However, once we navigate the traditionally tricky summer months, there will be opportunities for strong companies looking to list, and IPOs may return to the agenda later in the year.
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