The B.C. economy has seen some sluggish growth overall in the past couple of years. But don't blame the intrepid entrepreneurs and executives of B.C.'s fastest-growing companies.
Firms on this year's top 100 list collectively generated 2,110% average revenue growth between fiscal 2008 and 2012. That's up from the 1,543% in five-year revenue growth from companies on BIV's 2012 list of the top 100 fastest-growing companies in B.C.
For a fifth consecutive year, a B.C.-based mining company topped the list. This year, it was Vancouver's Timmins Gold Corp. (TSX:TMM), which saw top-line income jump 108,626% to $156 million in 2012 from $143,512 in 2008. (See "Crushing capacity spurs B.C.'s fastest-growing company"on B4.)
As in the past few years, gold, silver and other mining companies making the list have done well because of mergers and acquisitions, major projects entering commercial production or rising commodity prices. With gold and silver prices still rising in 2012, many of B.C.'s precious metal mining companies did well. This year's list included 27 mining companies, collectively generating more than $13.2 billion in revenue resulting in five-year revenue growth of 6,639% .
That's an increase from the 21 mining companies on the 2012 list, which collectively had a growth rate of 4,230% between 2007 and 2011.
But B.C.'s technology sector continued to dominate the list with 32 companies, the largest single sector represented on the list. Collectively, they posted average growth of 426% with revenues rising to $893.6 million in 2012 from $342.8 million in 2008. Vancouver's Avigilon (TSX:AVO) continued to show stellar growth, but so have other firms like dPoint Technologies, which has found success in finding alternative uses for fuel-cell technology. (See "Pivot was lifesaver for dPoint when fuel cell space sputtered" on B16.)
Small-business growth continues
The third most significant sector on the fastest-growing list was the services sector. Combined, posted a five-year revenue increase of 331% to $6.56 billion from $2.87 billion.
The list included large retailers and service companies including Lululemon Athletica (Nasdaq:Lulu), Lions Gate Entertainment (NYSE:LGF) and Glentel Inc. (TSX:GLN) But much of the fast growth in services has come from small and medium-sized (SMEs). And for many SMEs the rapid growth has been intentional.
Five years ago, Global Village Consulting embarked on a plan to expand its business of helping health-care providers implement and maintain their health information systems. That focus came with the goal of expanding to 100 staff, said CEO Leon Salvail. They grew to 61 staff and $14.3 million in revenue last year and are on track to grow to $20 million with 85 staff in 2013. "Not quite where we planned for as our stretch goal, but close."
Over the same period of time, Nancy Mudford, CEO of Spa Boutique, was increasingly focusing on her online retail business selling beauty care products in the very competitive cosmetics market. Initially, it was a secondary business to her Le Petit Spa business.
"But after a couple of years, I saw people were buying online and it was out of convenience. People knew their products already and were replenishing."
Last year, she sold her day spa business with Spa Boutique's sales growing to $3.5 million, an 864% increase from sales in 2008.
That level of growth has not come easily. Online competitors continue to pop up, some even going so far as to copy the look and content of her website. While the company posted its first profit last year, Mudford continues to look for new ways to stay ahead of her competition to further grow the business. In addition to the online store, the company has had its own store in Vancouver since 2010 offering facials and other services to estheticians about unique products generally found in the spa market.
On September 30, she is launching two other e-retail websites, lifestyleboutique.ca and pleasureboutique.ca, to focus the offerings for the company's different clientele with the aim of double-digit percentage growth in sales over the next few years.
She is even considering a site catering to men next year.
"If you start something online, you've got to really figure out how you are competitive, because what worked for us in the last seven years isn't necessarily going to work for us in the next seven years."
For Salvail, while the company has been in business for nearly two decades, the company plans to remain on a high growth trajectory. He aims to grow the company to 500 staff around the world and revenue over $100 million by 2018. •
