Industries with the Highest Profit Margin in the UK in 2023

1. Electricity Distribution in the UK

Profit Margin 2023: 43.1%

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 2023: 36.6%

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. Commercial Real Estate Agents in the UK

Profit Margin 2023: 35.9%

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

4. Private Equity in the UK

Profit Margin 2023: 35.9%

The UK is the largest European centre for the management of PE investments and funds, second only to the US in terms of global importance. PE firms pool investment funds or use leverage to purchase other companies. Their goal is to improve a company's performance by introducing managerial and operational changes, before selling the company for a profit. More CEOs are wanting to retain control of their companies, increasing the number of minority stake buyouts. PE firms profit from management fees, calculated as a percentage of AUM, and performance fees on the total return from the invested company's IPO or... Learn More

5. Chemical & Fertiliser Mineral Mining in the UK

Profit Margin 2023: 35.5%

The Chemical and Fertiliser Mineral Mining industry has been subject to volatile conditions over the past five years. The industry transitioned to the production of polyhalite, which led to a substantial reduction in potash prices and significant revenue decline for much of the past five years. However, production of polyhalite in 2018 has given the industry a new lease of life. Cleveland Potash Ltd, the largest firm in the industry, has transitioned into a polyhalite-only mining business. Industry players were able to continue production despite the COVID-19 (coronavirus) outbreak, with firms implementing social distancing measures and other safety measures to... Learn More

6. Open-Ended Investment Company Activities in the UK

Profit Margin 2023: 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

7. Legal Activities in the UK

Profit Margin 2023: 34.1%

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

8. Search Engines in the UK

Profit Margin 2023: 33.7%

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

9. Wind Power Generation in the UK

Profit Margin 2023: 33.4%

Wind power is a rapidly growing force in UK electricity generation, with the number and size of UK wind farms increasing in recent years. As the UK strives for net-zero emissions, abundant natural resources make wind energy the highest yielding option. Government support for renewables has boosted investment in wind-generating assets, with most of the capacity expansion coming from offshore wind. According to government data, the share of electricity generated from wind power increased from 14.7% in 2017 to 20.9% in 2021.

Revenue has increased at a compound annual rate of 11.7% to £5 billion over the five years through 2022-23.... Learn More

10. Whisky Production in the UK

Profit Margin 2023: 32.4%

Operators in the Whisky Production industry distil and bottle whisky, which is then sold to on-trade and off-trade markets. 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, which restricts the supply of Scotch whisky and increases premiumisation. The industry's level of market share concentration has fallen during the period, driven by the high number of new firms entering the industry.

Over the five years through 2022-23, industry revenue is expected to grow at a compound annual rate of 0.8% to £4.4... Learn More