Most Profitable Industries in the UK in 2020

1. Pension Funding in the UK

Total Profit for 2020: $71.0B

The Pension Funding industry comprises defined benefit (DB) schemes and defined contribution (DC) schemes. Over the past decade, the industry has been transformed by the ongoing shift from DB to DC schemes, which in 2020-21 are estimated to account for 57.6% and 42.4% of total industry assets respectively. Industry revenue, which is calculated by combining contributions and investment returns, has increased over the past five years. The increase in contributions was fuelled by the phased introduction of automatic enrolment in pension schemes, which began in October 2012 and was fully phased in by February 2018. Record high levels of employment... Learn More

2. Banks in the UK

Total Profit for 2020: $29.7B

Retail and commercial banks generate most of their revenue by charging interest on loans, while a secondary source of revenue is represented by non-interest income from card fees and overdraft fees. Although economic uncertainty since the EU referendum in June 2016 limited demand from home mortgages to an extent, while subdued business confidence reduced demand for commercial loans, prior to the outbreak of the coronavirus the industry was expanding at a moderate pace. Personal lending grew as consumers became increasingly reliant on debt to fund spending. However, a stricter regulatory environment, including increased capital requirements introduced under the Basel III... Learn More

3. Construction Contractors in the UK

Total Profit for 2020: $19.6B

Operators in the Construction Contractors industry are active across the building construction and civil engineering markets. While, by broad definition, industry operators are remunerated for completing new building and infrastructure construction contracts, or for fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus almost exclusively on the construction of new dwellings, while civil engineering specialists afford clients services across the infrastructure value chain. Meanwhile, some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale maintenance contracts in local markets.Inclusive of 1.5% growth expected... Learn More

4. Open-Ended Investment Company Activities in the UK

Total Profit for 2020: $15.4B

Open-ended investment companies (OEICs) and unit trusts are both types of collective investment schemes that can constantly 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. Therefore, the fund size is proportional to its investment performance. OEICs are priced to reflect the net asset value (assets less liabilities) 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... Learn More

5. Building Project Development in the UK

Total Profit for 2020: $13.4B

Operators in the Building Project Development industry bring together the financial, technical and physical resources required to complete a property development. Upon completion, the property may be delivered to a client for subsequent use or sale, or the developer may retain equity interest and derive income via rental fees charged. The financial and operational performance of development markets rests on a plethora of economic and socio-economic factors, ranging from property valuations and price movements to market sentiment and credit conditions.

Despite the referendum dampening investor sentiment and cooling property markets, the collective performance of UK property developers remained resilient in the... Learn More

6. Legal Activities in the UK

Total Profit for 2020: $12.8B

Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2019-20, industry revenue is expected to expand at a compound annual rate of 1.4%. Widespread business uncertainty following the EU referendum, a decline in merger and acquisition (M&A) activity and falling residential property transactions are expected to have limited industry revenue growth during the period. In the current year, however, revenue is forecast to rise by 1.4% to £35.7 billion. An increasingly large number of client firms have required legal support to comply with changing laws and... Learn More

7. Residential Building Construction in the UK

Total Profit for 2020: $11.4B

The Residential Building Construction industry's performance is contingent on cyclical economic fluctuations, and the propensity of property developers to invest in new ventures; movements in property prices, which are conditional on the housing stock demand-and-supply ratio and dictate equity levels; government schemes intended to boost the housing supply; and underlying sentiment in the housing market, which influences property investment and mortgage market activity.

While EU-referendum-related market uncertainties persisted and house price inflation somewhat stalled, industry revenue expanded for five consecutive years through 2018-19 with the support of government programmes and new funding to induce land development and housebuilding activity. However, lower... Learn More

8. Computer Consultants in the UK

Total Profit for 2020: $9.8B

The Computer Consultants industry is composed of businesses that provide expert advice and assistance in planning and designing computer systems that integrate computer hardware, software and communication technologies. Computer consultants provide services to clients in all sectors of the economy, although clients within the financial services sector and the public sector are particularly important markets. Demand for industry services is largely influenced by business confidence levels, which rise and fall with general economic conditions, and technological advancements, particularly those that are beneficial to businesses.

With the exception of a plateau in the current year caused by the global economic slowdown generated... Learn More

9. Management Consultants in the UK

Total Profit for 2020: $8.4B

The Management Consultants industry covers a broad range of consulting services, including strategic and organisational planning, marketing, IT, human resource consulting and business process management. Over the five years through 2019-20, industry revenue is expected to grow at a compound annual rate of 2.8%, including growth of 4.5% in the current year, to reach £55.5 billion. This growth is anticipated to be largely driven by rising demand for IT consulting services. In addition, regulatory changes in the financial services sector, the industry’s largest downstream market, have benefited industry participants, as banks and other financial institutions have required assistance to reformulate... Learn More

10. New Car & Light Motor Vehicle Dealers in the UK

Total Profit for 2020: $8.0B

The industry performed strongly in 2015-16. Rising incomes and low fuel prices encouraged motorists to purchase new cars, with new car registrations reaching record levels in 2016. Cheap finance deals, the wider availability of new technologies in new cars and the improved fuel economy offered by new models contributed to the industry's strong revenue performance. However, falling consumer confidence and business capital expenditure due to economic uncertainty since the EU referendum have contributed to falls in new car sales in the years since.

Over the five years through 2019-20, revenue is expected to decrease at a compound annual rate of 1%,... Learn More