Industries with the Highest Profit Margin in the UK in 2021

1. Gas Distribution in the UK

Profit Margin 2021: 40.0%

Operators in the Gas Distribution industry maintain a 284,000 kilometre gas pipeline network across the United Kingdom. The industry is comprised of eight Gas Distribution Networks (GDNs) across Great Britain, owned by four companies which operate regional monopolies. To protect consumers, operators are heavily regulated through price control frameworks. There are also nine smaller networks operated by independent gas transporters (IGTs) that primarily connect new build homes and industrial sites to existing networks, while a further two IGTs operate the Northern Ireland distribution network. The Office of Gas and Electricity Markets (Ofgem) is the regulatory body for Great Britain, while... Learn More

2. Immersive Technology in the UK

Profit Margin 2021: 37.9%

Immersive technologies, or extended reality (XR) – an umbrella term for virtual reality, augmented reality, mixed reality and haptics - integrate visual content with the physical environment, ‘immersing' the user of associated devices, such as head-mounted display units, in a simulated setting. Firms in the Immersive Technology industry design and develop immersive visualisation software programs, systems and networks. Players then sell these solutions and the intellectual property to clients under licence. They may also undertake bespoke projects related to the development of XR and associated content on the behalf of clients.

Industry revenue is expected to rise at a compound annual... Learn More

3. Electricity Distribution in the UK

Profit Margin 2021: 37.6%

Operators in the Electricity Distribution industry maintain an extensive network of lines and cables across the United Kingdom, carrying electricity from the high voltage transmission grid to end users. Electricity distribution network operators (DNOs) have regional monopolies, so pricing in the industry is heavily regulated by the Office of Gas and Electricity Markets (Ofgem) in Great Britain and the Northern Ireland Authority for Utility Regulation (NIAUR) in Northern Ireland. In the United Kingdom, there are currently 15 different DNOs managed by seven operators and 14 independent distribution network operators (IDNOs) working primarily to connect new housing, commercial and industrial premises... Learn More

4. Whisky Production in the UK

Profit Margin 2021: 34.3%

The Whisky Production industry in the United Kingdom is involved in the end-to-end process of whisky production, with particular focus on distilling, bottling, and trading with retailers and wholesalers. The industry is dominated by the production of Scotch single malt and Scotch blended whisky. Scotch whisky can only be produced in Scotland according to strict regulatory standards, increasing premiumisation and restricting the supply of Scotch whisky.

The industry's level of market share concentration has risen during the period, as the largest operators have invested significantly in increased production and capital processes. This has reduced utility costs, aiding profit margin growth. Over... Learn More

5. Search Engines in the UK

Profit Margin 2021: 32.1%

The Search Engine industry is highly concentrated, with three companies controlling almost the entire industry; the largest company in the industry, Alphabet Inc, has a market share greater than 90% in 2021-22. Industry operators provide web portals that generate and maintain extensive databases of internet addresses. Industry participants generate the majority, if not all, of their revenue from advertising. Technological growth has resulted in more households being connected to the internet, and a boom in e-commerce has made the industry increasingly innovative.

Over the past decade, an increase in the percentage of households with internet access has supported revenue growth, while... Learn More

6. Water Collection, Treatment & Supply in the UK

Profit Margin 2021: 30.4%

The Water Collection, Treatment and Supply industry manages, stores and distributes clean water to domestic and industrial customers. Barriers to entry are high in the industry, with large start-up and maintenance costs, and the industry is dominated by regional monopolies. All industry operators are subject to regulation in terms of prices charged and services provided. Companies in the industry submit a breakdown of their performance and five-year business plan to industry regulators, namely the Water Service Regulation Authority (Ofwat), which then set the prices companies can charge. Industry services are essential so demand tends to remain steady from year to... Learn More

7. Legal Activities in the UK

Profit Margin 2021: 30.1%

Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2021-22, industry revenue is expected to rise at a compound annual rate of 0.3% to reach £36.8 billion. Widespread business uncertainty following the EU referendum and the COVID-19 (coronavirus) outbreak have weighed on industry growth, owing to declining M&A activity and falling residential property transactions. However, the industry is countercyclical, meaning that demand for legal work in certain areas, such as litigation and insolvency matters, grows in times of economic downturn. This is expected to mitigate steeper... Learn More

8. Private Equity in the UK

Profit Margin 2021: 30.1%

The United Kingdom is the largest European centre for the management of private equity investments and funds, and second only to the United States in terms of global importance. Private equity firms pool investment funds to purchase other companies. They attempt to improve a company's performance by implementing managerial and operational changes, before selling the company for a profit, generating return for their investors. The industry's key source of revenue is fees derived from management fees, calculated as a percentage of assets under management (AUM), and from performance fees on the total return from an invested company's initial public offering... Learn More

9. Audiobook Publishing in the UK

Profit Margin 2021: 30.1%

The Audiobook Publishing industry includes businesses involved in the design, marketing and distribution of audiobooks. Audiobook publishers hold rights to book titles and may publish content in solely audio form or, more commonly, in conjunction with print and e-book editions of the work. The industry is growing and its progress over the past five years is encouraging when taking into account the difficult conditions that have characterised the wider UK Book Publishing industry (IBISWorld report J58.110). Over the five years through 2021-22, industry revenue is expected to grow at a strong compound annual rate of 19.6%. IBISWorld expects that the... Learn More

10. Funeral Activities in the UK

Profit Margin 2021: 28.4%

Operators in the Funeral Activities industry offer cemetery, crematorium, embalming and undertaker services. The industry includes the maintenance of mausoleums and the sale and maintenance of graves. Due to the essential nature of industry services, demand is considered to be price inelastic. A rise in the price of industry services leads to a less than proportionate drop in industry demand. Demand for the industry's services is directly influenced by the number of deaths in the United Kingdom and real household disposable income levels. Over the five years through 2020-21, industry revenue is expected to increase at a compound annual rate... Learn More