LONDON, July 10, 2026 /PRNewswire/ -- Price Bailey's Mid-Market index shows revenue growth barely keeping pace with inflation as profits come under pressure.
UK mid-market companies are delivering headline revenue growth, but for most businesses this is barely outpacing inflation and is failing to translate into stronger profits, according to new research by Price Bailey, the leading accountancy firm.
The Price Bailey Mid-Market Index 2026, which analysed 12,625 UK businesses with revenues between £10m and £250m across 16 sectors, found that average revenue growth continues to be driven by a small number of high-performing outliers rather than broader growth.
While mean compound annual revenue growth stands at 12%, the median business is growing at just 6%, only slightly ahead of average inflation of 5.3% over the period. This gap highlights the pressure facing mid-market companies operating in a challenging economic environment.
The research goes on to show that revenue growth across UK regions remains modest for the typical business, with median growth only marginally above inflation in most areas.?London displays the widest gap between top-performing companies and the median.
Sector analysis suggests that the strongest performers are businesses with the ability to protect or increase prices, those sectors with limited pricing flexibility are more likely to see growth eroded by inflationary pressures.
According to the data, revenue growth is not feeding through into profit growth. EBITDA and profit after tax for mid-sized companies have failed to keep pace with rising revenues in recent years, meaning many businesses are working harder simply to stand still. This trend has implications for shareholders and business owners, as higher turnover does not necessarily equate to improved returns.
Commenting on the findings, Chand Chudasama, member of the Board and Partner in the Strategy and Corporate Finance team at Price Bailey says: "The headline figures suggest growth, but when you look beneath the surface a different picture emerges. For many mid-market businesses, revenue increases are being absorbed by inflation and cost pressures, while profits remain stubbornly flat. The real differentiator now, is pricing power."
More data is available on in the Price Bailey Mid-Market Index, on the Price Bailey website.
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