Industries with the Highest Profit Margin in the UK in 2024

1. Banks in the UK

Profit Margin 2024: 47.3%

Over the five years through 2023-24, UK banks' revenue is expected to grow at a compound annual rate of 0.3% to £123.2 billion, including anticipated growth of 9.9% in 2023-24. Low interest rates after the financial crisis limited the interest earned by banks from loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks have shut the doors of lots of branches and made substantial job cuts.

The COVID-19 outbreak triggered a dramatic decline in revenue during 2020-21... Learn More

2. Venture Capital in the UK

Profit Margin 2024: 44.3%

The Venture Capital industry has seen healthy growth over the past decade, as investors increasingly turn to private markets, seeing the benefits of greater returns and portfolio diversification that a venture capitalist can offer. From being a niche area of finance consisting of old-school investors and investment bankers, venture capital has evolved to allow investors to capitalise on new technologies and innovations that could disrupt and shape the future. This phenomenon has become all too common in recent years, with the rapid pace of technological change giving rise to exciting advancements like generative AI.

Venture capital revenue is projected to grow... Learn More

3. Pipeline Transport in the UK

Profit Margin 2024: 43.4%

Natural gas reserves in the UK, domestic electricity production and the world prices of natural gas and crude oil significantly influence the performance of pipeline operators. The complex infrastructure of long-distance pipeline transport lends itself to a limited number of operators rather than a host of companies in charge of various sections across different regions. As a result, most companies in the industry operate as monopolies, although bodies like Ofgem and NIAUR tightly regulate them. The National Grid dominates and accounts for the bulk of activity as it owns the gas transmission system in Great Britain. Revenue dove sharply in... Learn More

4. Gas Distribution in the UK

Profit Margin 2024: 40.4%

The industry comprises eight Gas Distribution Networks (GDNs) across Great Britain, owned by four companies operating regional monopolies. Gas distributors are heavily regulated through price control frameworks set by Ofgem in the UK and NIAUR in Northern Ireland to protect consumers. The industry was restructured in 2005 when National Grid sold four of its eight regional distribution networks. Scotia Gas Networks acquired two GDNs, while Northern Gas Networks and Wales & West Utilities acquired one. Independent Gas Transporters have carried out approximately half of the new gas connections and modifications since 2005. Over the five years through 2023-24, gas distributors'... Learn More

5. Game & Toy Manufacturing in the UK

Profit Margin 2024: 40.1%

Game and toy manufacturers have performed resiliently in recent years in the face of rising import penetration and changing consumer tastes. Successful product developments to maintain interest from children and their parents have supported sales. Nevertheless, intense competition from imports has mitigated the effect of growing domestic demand. Revenue is expected to increase at a compound annual rate of 1% over the five years through 2023-24 to reach £796.9 million.

The collapse of major toy retailer Toys “R” Us in 2018 highlights some of the issues toy manufacturers face; competition from imports and video games has limited opportunities. Professional games have... Learn More

6. Electricity Distribution in the UK

Profit Margin 2024: 37.7%

Electricity distribution network operators (DNOs) operate regional monopolies, so pricing in the industry is heavily regulated by 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 16 independent distribution network operators (IDNOs) working primarily to connect new housing, commercial and industrial premises to existing networks.

Revenue is forecast to increase at a compound annual rate of 1% to reach £8.3 billion over the five years through 2023-24. Attempts to save consumers money on their energy bills spurred a reduction... Learn More

7. Beer Production in the UK

Profit Margin 2024: 36.5%

The UK Beer Production industry is growing despite facing pandemic- and inflation-related turbulence. The rising number of Britons looking for more complex flavours and locally-brewed beer is resulting in new craft breweries flooding the industry, enhancing competition levels.

Industry revenue is projected to grow at a compound annual rate of 2.1% over the five years through 2022-23 to approximately £9.6 billion, including a growth of 0.9% in 2022-23. The pandemic-driven closures of the hospitality sector removed a big chunk of industry revenue that began recovering following the lifting of restrictions. Large beer makers are trying to protect their market share lead... Learn More

8. Spirit Production in the UK

Profit Margin 2024: 36.5%

The UK Spirit Production industry is in decline due to facing some pandemic- and inflation-related turbulence. The rising number of Britons looking for quality over quantity and locally-distilled spirits is driving strong growth in the number of craft distilleries entering the industry.

Industry revenue is falling at a compound annual rate of 0.9% over the five years through 2022-23 to approximately £5.4 billion, including growth of 2.2% in 2022-23. The temporary shutdown of the hospitality sector removed a big chuck of industry revenue that began recovering following the lifting of restrictions. Large industry players are rapidly expanding their market share by... Learn More

9. Chemical & Fertiliser Mineral Mining in the UK

Profit Margin 2024: 35.9%

The Chemical and Fertiliser Mineral Mining industry's revenue has expanded at a compound annual rate of 1.1% over the past five years. The industry's production has shifted considerably as the largest mineral extractor, Cleveland Potash, changed its mine's production from muriate of potash to sulphate of potash (polyhalite) in 2018, causing revenue to fall as the company had to ramp up production. The two other major companies in the industry, Schlumberger Oilfield and Fluorsid British Fluorspar have also shifted production, with Schlumberger opening a new mine and Fluorsid moving mining operations from the western to the eastern portion of its... Learn More

10. Open-Ended Investment Company Activities in the UK

Profit Margin 2024: 35.8%

The Open-Ended Investment Company Activities industry's revenue is set to contract at a compound annual rate of 0.2% over the five years through 2023-24 to £3.7 billion. The total assets under management in the industry have increased over the past decade, thanks in part to the rollout of automatic enrolment into pensions, significantly boosting pension funds' capital invested into OEICs. However, the COVID-19 outbreak significantly disrupted OEICs. High-interest rates caused by soaring inflation damaged the short-term value of fixed assets in portfolios and limited interest in equities.

The cost-of-living crisis weakened household savings, causing retail investors to pull funds out of... Learn More