The preparation and publication of this report, presented today, falls within Unicaja Banco’s policy to support the business sector and to foster entrepreneurship.
It is based on the analysis of the annual accounts presented by over 75,000 companies at the trade registers of Andalusia, corresponding to the financial year 2016 –latest year with information available for all the companies which compose the sample. This edition includes an advance of the results of Andalusian companies in 2017.
Unicaja Banco has published the report ‘Análisis Econónomico-Financiero de la Empresa Andaluza 2018’ (Economic and Financial Analysis of Andalusian Companies), prepared by Analistas Económicos de Andalucía (Grupo Unicaja Banco’s research company). The document, presented today, addresses the business dynamic of the region, reviews its economic context and studies the behaviour of companies. It also identifies the Business References, considering their capacity to generate resources, increase sales and obtain profitability.
The preparation and publication of this report falls within Unicaja Banco’s policy to support the business sector and to foster entrepreneurship, and is based on a detailed analysis of the annual accounts presented by over 75,000 companies at the trade registers of Andalusia, corresponding to the financial year 2016 –latest year with information available for all the companies which compose the sample-. This edition includes an advance of the results of Andalusian companies in 2017.
Together with the publication of the report, the website (cba.analistaseconomicos.com) has been updated for consultation of the mentioned work and it contains the economic and financial information on which the analysis is based.
The report is structured as follows: after a first introductory section and the synthesis of the main results, a review is made of the economic context in which Andalusian companies have carried out their activities. It focuses then on their demographic features (nature of the business activity, size and geographical location) and their evolution in recent years.
In a second block, the report analyses the companies which, because of their economic and financial behavior, are regarded as Business References, under three criteria: capacity to generate resources (leaders), capacity to increase sales (gazelles) and capacity to obtain a high profitability (high profitability).
After this, attention is paid to the economic and financial evolution of regional companies during the period 2014-2016, although the core of the examined information is the last year. This analysis ends with an advance of the results for the year 2017. Finally, a ‘Dictionary of economic and financial terms’ is included as an annex, to make it easier to understand and interpret the document, and to define the basic concepts used in the analysis.
The main results of the report are explained below:
Business demographic dynamics
In 2017, the Andalusian economy reinforced the expansive growth path started in the second semester of 2013, registering an increase of around 3% in production.
In this context, at the end of the year, 501,745 companies developed their activities in Andalusia, 13,419 more than the previous year (2.5% year-on-year).
Regarding business density, in Andalusia there are 59.9 companies per thousand inhabitants, 1.6% more than in the previous year.
With regard to size, businesses without employees grew by 2.8%, companies with 1 to 9 employees, by 1.8%, whereas those with 10 to 99 employees and those with more than 100, grew at a faster pace, at a rate of 4.7% and 9.3% respectively.
Considering the activity sector, non-commercial services gather 57% of the total of companies in the region; commercial services, 27%; construction, 10.5%, and industry, 5.5%. In comparison with the previous year, companies from the services grew by 3.4% and construction companies, by 0.8%.
From a territorial perspective, Malaga has 119,512 companies (23.8% of the total of the region); Seville, 115,932 (23.1%); Cadiz, 60,169 (12.1%); Granada, 58,436 (11.6%); Cordoba, 47,101 (9.4%); Almeria, 42,329 (8.4%); Jaen, 33,842 (6.7%) and Huelva, 24,424 (4.9%). Only Malaga province, with a business density of 73.5, surpasses the national average (70.5).
Social economy companies operating in Andalusia rise in Andalusia to 6,008, of which 66.1% are cooperatives and the remaining 33.9%, labour societies. Andalusia is the Spanish region with the highest percentage of this kind of companies, with 19.9% of the total national, followed by Cataluña (17.2%) and Comunidad Valenciana (10.6%). The provinces with the largest share in these companies are Seville (21.1%), Málaga (17.4%), Jaén (12.0%) and Córdoba (11.9%).
On the other hand, 2017 saw the creation of 15,380 mercantile companies in Andalusia. This figure represents 16.3% of the total national. In contrast, the number of dissolved companies reached 3,484 (16.2% of the total national), of which 12.1% were due to merger transactions.
With the data for the period 2013-2016, 5,714 companies in Andalusia meet at least one of the three excellence criteria considered: 2,051 businesses are regarded as leaders (2.32% of the available sample), 2,021 as gazelles (3.14%) and 1,642 as high profitability (2.31%). The demanding conditions set are behind the fact that only 23 companies belong simultaneously to the three groups.
Considering size, medium-size enterprises have a higher relative weight in the category of leaders (45.1% of the total), exceeding the average distribution of the representative sample, while micro-enterprises excel in gazelles (68.6%) and in high profitability (87.5%).
As per sector distribution, the preponderance of agricultural and industrial companies in leaders (43.0% of the total) is remarkable, as well as that of commercial companies in gazelles and of service companies in high profitability.
From a territorial point of view, the province of Seville shows the largest concentration of business references in the region (27.2% of the total), with a share of 29.8% in leaders, and of 25.5% in gazelles. In the category of high profitability, Malaga has the largest relative share (30.3%).
Finally, according to the population size, 38.8% out of the total of business references are located in province capitals. The highest relative weights observed in province capitals stand for leaders (42.1%) and for high profitability (41.3%), whereas gazelles are more represented in other cities and towns with less than 50,000 inhabitants (43.8%).
Economic and Financial Analysis 2016 and advance for 2017
In 2016, sales (business turnover) of Andalusian companies increased by 5.8% (2.7% in the total national), with higher growth in 2017, reaching rates of around 11%. With regard to their average size, medium size companies posted a growth higher than the regional total in 2016 (8.0%). From the point of view of sectors, the largest increase has been registered in commerce (8.1%). By provinces, the growth of companies in Jaen (10.7%) and Almeria (7.5%) stands over the regional average.
The year result in Andalusia represents 3.1% of the business turnover, a 0.9 p.p. year-on-year increase, and the 2017 advance reaches 4.7%. Additionally, 63.8% of companies located in the region obtained positive results in 2016.
On the other hand, investment has increased by 2.9% in 2016, due to a growth of current investment (4.9%). Outlooks for 2017 suggest a growth of around 5%.
With regard to their financial structure, own funds increased by 6.9%, whereas in borrowed capital, the growth of short-term liabilities (2.7%) has been accompanied by a 2.6% decrease in non-current liabilities. As per their origin, liabilities with credit institutions represent 19.3% of indebtedness, 0.9 p.p. less than in the previous year.
Regarding the performance of the business activity, an improvement has been noticed both in economic and financial profitability, reaching 3.4% and 5.1% respectively. In relation to economic profitability, the levels reached by microcompanies (4.1%) and medium-size entreprises (4.0%) are to be remarked, as well as those of the industrial (5.7%) and commercial (4.7%) sectors.