Irish companies growing at twice the rate of their EU peers

Irish companies grew at more than twice the rate of their European counterparts last year, according to earnings estimates collated by research group S&P Capital IQ.

The estimates show annual revenue for companies on the S&P Ireland index, which tracks the State's leading 35 firms, grew by an average of 9 per cent in 2014. This compared to an average revenue growth rate of 4 per cent for companies on the S&P Europe 350 index, which tracks Europe's top blue-chip entities.

In terms of earnings per share (EPS), the most commonly used indicator of profitability, Irish firms also out-performed their European peers.

The group's analysis shows average EPS growth for Irish companies last year was 96 per cent, compared to just 8 per cent for S&P Europe 350 firms.

The findings underscore the strength of the recovery of Ireland’s economy, which grew by 4.8 per cent last year, the fastest rate in Europe.

S&P Capital IQ is part of the McGraw Hill Financial stable, which also houses the Standard & Poor’s rating agency. The group said its research was based on consensus earnings estimates via the quarterly or annual earnings results of the companies assessed.

It said it expected Irish companies to continue to outperform their European peers this year and in 2016.

Investors

Responding to growing investor interest in Ireland, S&P Capital IQ says it plans to provide investors with analysis and research on Ireland.

“Ireland’s economic recovery has certainly been identified by the global markets and foreign investors as a source of opportunities, which has led to an increased demand for detailed information and data on Irish companies to inform financial market participants’ investment decisions,” said Sunny Uberoi, head of global communications at S&P Capital IQ.

"With this in mind, we have expanded our fundamental dataset to include detailed financials of almost 5,000 privately held companies in Ireland. This expansion also complements our dataset of financials for over 570,000 western European privately held companies," Mr Uberoi said.

The strong market confidence behind Ireland's recovery was reflected in the issuance of a 30-year bond by the State in February and a record 4.5 million trades involving shares on the Irish Stock Exchange last year.