Industries with the Highest Profit Margin in the UK in 2022

1. Electricity Distribution in the UK

Profit Margin 2022: 42.5%

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 15 independent distribution network operators (IDNOs) working primarily to connect new housing, commercial and industrial premises to... Learn More

2. Gas Distribution in the UK

Profit Margin 2022: 42.3%

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 a number of 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 the Northern Ireland Authority for Utility Regulation (NIAUR) is the regulatory body for Northern Ireland.

Industry... Learn More

3. Open-Ended Investment Company Activities in the UK

Profit Margin 2022: 35.3%

Open-ended investment companies (OEICs) are a type of collective investment scheme that can adjust their portfolios to maximise returns, given a specific investment remit. The size of the fund depends on demand for fund shares, which are created and cancelled upon purchase and redemption. As a result, the fund size is proportional to its investment performance. OEICs are priced to reflect the net asset value of their investments and may have multiple share classes. Funds invest in a range of assets, including domestic and global equities, government and corporate fixed-income securities, and a range of derivatives. While fund styles differ... Learn More

4. Private Equity in the UK

Profit Margin 2022: 34.7%

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

5. Legal Activities in the UK

Profit Margin 2022: 33.6%

Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2022-23, industry revenue is expected to rise at a compound annual rate of 0.7% to reach £40.2 billion. Widespread business uncertainty following the EU referendum and the COVID-19 (coronavirus) outbreak has limited industry growth. 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 declines. In 2022-23, revenue is expected to fall by 2.1% due... Learn More

6. Search Engines in the UK

Profit Margin 2022: 33.6%

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 2022-23. 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

7. Commercial Real Estate Agents in the UK

Profit Margin 2022: 33.4%

Operators in the Commercial Real Estate Agents industry act as intermediaries when a non-residential property is bought, sold, rented or leased. Typically, estate agents can earn income via fees and commissions charged to clients. Agents may also provide clients with value-added ancillary services through which they can generate additional revenue. These services include specialist transaction advisory services and escrow services; legal and financial services are not considered relevant to the industry.

Over the five years through 2022-23, industry revenue is forecast to decrease at a compound annual rate of 1.8% to £6.6 billion. However, this masks a volatile operating period for... Learn More

8. Water Collection, Treatment & Supply in the UK

Profit Margin 2022: 32.1%

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

9. Audiobook Publishing in the UK

Profit Margin 2022: 31.2%

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. Immersive Technology in the UK

Profit Margin 2022: 30.4%

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