Insights into the Sunday Times 100 Tech List
The landscape of business expansion is diverse. In our annual Sunday Times 100 ranking, we focus on rapidly growing firms that are also profitable. However, it is important to note that growth and profitability do not always align.
Particularly within the tech industry, companies often experience expenses that surpass their revenues for extended periods. This strategy is intentional; funds from investors are directed towards development to outpace competitors and capture market share. Although immediate profits may be elusive, considerable value is still generated.
To highlight the thriving tech sector in the UK, we have introduced the Sunday Times 100 Tech ranking. This list serves as a complementary table to our established rankings. To qualify, companies must be independent, privately held, and based in the UK. We define a technology company as one that either sells its own proprietary technology or has developed essential proprietary technology for its products and services. Eligible companies must have reported sales between £5 million and £250 million in their most recent financial year, alongside a minimum of £100,000 in sales four years prior. They are evaluated based on their compound annual growth rate (CAGR) over a three-year time frame.
Identifying qualifying companies for this ranking was a challenging task. Beauhurst monitors every business in the UK, focusing specifically on growth and innovation. Our extensive research on venture capital funding, Innovate UK grants, and patent activity provides a comprehensive overview of the technology sector. However, discerning between actual growth and mere ambition proved more difficult than anticipated. Some notable tech firms, such as the software development platform Builder.ai and medical equipment manufacturer OrganOx, opted not to disclose their revenues, which could have secured them a place on the list. Led by our determined researcher, Ying van de Walle, we believe that the outcome is the most thorough ranking of tech growth available, featuring company financial data that may be new to many readers.
Sales figures represent the statutory revenues as disclosed in each company’s annual financial statements. While annual recurring revenue (ARR) is a common metric in the tech industry, we made a concerted effort to compile statutory revenues for those companies that provided them during the shortlisting process.
The caliber and variety of entries were remarkable, showcasing the rich tapestry of Britain’s tech specializations, from well-known software companies to a wide array of hardware manufacturers. The significance of software, especially in the context of AI, cannot be overstated. Concurrently, hardware also plays a vital role in advancing towards a more sustainable economy. Therefore, we categorized the 100 listed companies into two separate groups: 50 in software and 50 in hardware and other non-software categories. Notably, software companies displayed faster growth, with the lowest CAGRs recorded at 65% and 25% per annum for each category, respectively, both exceeding the minimum growth rates that define promising scale-ups.
Impressively, our inaugural list includes 12 unicorns, such as AI innovator Synthesia (ranked No. 7 in Software) and surgical robotics leader CMR Surgical (ranked No. 17 in Hardware). However, certain unicorns did not qualify due to their larger size, with revenues exceeding £250 million—examples include banking fintechs Monzo and Revolut, as well as data integration firm Matillion and hotel software developer Lighthouse, which exhibited slower growth rates.
Notably, two-thirds of the featured companies reported operating losses in their most recent financial year. These loss-making firms highlight a crucial subset of businesses supported by investors, with equity funding bridging the gap when revenues fall short. Collectively, the 100 companies have raised an impressive £10 billion in total investment. Among the most active venture capitalists in this space are Oxford Science Enterprises (five investments), Seedcamp (four), Index Ventures (four), Northzone (three), Balderton Capital (three), GV (Google Ventures, three), and Entrepreneur First (three).
This year’s list showcases fintech, AI, and cleantech as the leading sectors, in that order. While these sectors also rank highest for UK venture capital investment, the hierarchy has shifted recently, with AI now leading and cleantech surpassing fintech.
We acknowledge that various business models exist, and revenue is not the sole indicator for evaluating companies. For instance, some biotech firms working on groundbreaking medicines and treatments may be acquired or go public before generating revenue. To celebrate these innovators, we’ve included a separate section highlighting eight biotech companies. Additionally, we acknowledge eight outstanding rising stars led by women in our Ones to Watch feature. We are excited to spotlight future successes, including Wayve, an autonomous vehicle company that raised $1 billion last year to advance its technology, although it has yet to achieve significant revenue growth.
Henry Whorwood serves as managing director of research & consultancy at Beauhurst; Ying van de Walle operates as an independent researcher.
Key Information
Our sources include research conducted by journalists at Times Enterprise Network, Beauhurst’s proprietary database of growth companies, and self-nominations from the companies themselves. In instances where accounts were not available at Companies House, we used draft accounts submitted by the companies. It is important to note that public data on growth companies is often limited due to the abbreviated accounts typically filed by smaller businesses.
The companies featured on this list are not endorsed or recommended by the sponsors, Beauhurst, or The Sunday Times, and their inclusion does not guarantee they are the best-managed organizations. Suggestions for next year’s list are welcome.
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