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Private Companies in Service Industries Show Strong Sales Growth

June 25, 2013, 07:16 AM
Filed Under: Economic Commentary

According to the Sageworks Private Company Report, private companies continue to grow at a healthy pace and to experience strong profit margins in the most recent period. Private companies were generating an average annual sales growth of about 10 percent as of May 31st, or about the same growth they were seeing a year ago.   The estimate is based on the sales growth reported by companies filing annual statements in the six months ended May 2013.  Companies also continued to expand their profit margins in this period, reporting net profit margins close to 7 percent.
A sector analysis showed that service industries like consulting companies, architectural firms and computer systems design companies are seeing strong sales growth. 

Sageworks Chairman Brian Hamilton pointed out that, despite healthy sales growth and profit margin expansion, “companies remain very resistant to increasing their overhead.”  The healthy performance of these companies coupled with their tepid hiring practices remains to be a troubling paradox, according to Hamilton.  
Sageworks Private Company Report is an update on the health of privately held companies in America. It includes metrics on the average U.S. privately held company, as well as the performance of notable sectors and industries.

To downlod the full report, including sector breakout and further analysis, click here.

Raleigh, NC-based Sageworks is a financial information company that provides risk management solutions to financial institutions. Sageworks’ data and applications are used by thousands of financial professionals across North America.

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