The U.K.'s mid-cap companies are making the most of the country's buoyant economic growth, outperforming the FTSE 100 when it comes to revenues and profits.
Companies on the FTSE 250, a mid-cap index, saw total revenues hit £71.8 billion ($120.5 billion) in the three months to the end of March, a rise 3.3 percent compared to the same period last year, outstripping the 1 percent increase among the FTSE 100 cohort, according to a report from The Share Centre, a broker and advice service.
The U.K. has seen a strong economic recovery and growth passed its pre-crisis peak when it reported that its annual gross domestic product rose 0.8 percent in the second quarter. The International Monetary Fund (IMF) said Britain would be one of the fastest expanding economies this year, and mid-caps who have a large domestic exposure, have benefitted from this robust growth.
But a strong pound, which has seen an 8 percent rise against the dollar over the past year, has hurt companies' margins – particularly among the large-caps.