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The Top 500 Private Companies in perspective
Special Report: The Top 500
Private Companies in perspective
By Phil Ruthven, Founder, IBISWorld
Australia’s The largest 500 private companies
generated $220 billion in revenue in
largest private FY2018, or 4.3% of the nation’s total
companies are an ($5.1 trillion). These companies represent
important group a microcosm of the nation in many
regards, including their industry mix and
in the Australian the best performers’ profitability, but the
business list of players is always changing. We have
landscape again excluded the large superannuation
funds this year due to accounting
difficulties, which has lowered the Top
500 Privates’ share of the nation’s
revenue by over 1%.
This year, Visy ($6.7 billion) has again
topped the list. However, Gina Rinehart’s
Hancock Prospecting ($5.0 billion) is fast
approaching this top position, leaping
from 11th place in 2017 to second place
this year. The company’s massive
investment in WA iron ore mining project
Roy Hill boosted its return on equity from
minus 0.1% in FY2015 to 5.3% in
FY2016, and on to a respectable 12.0%
in FY2017. Rinehart’s foray into corporate
agriculture (via beef cattle, the industry’s
largest segment in 2018) marks her as a
pioneer of the upcoming fourth era of
agriculture since British Settlement in
1788. Andrew Forrest, of Fortescue Metals
fame, is of a similar mind, as are a select
www.ibisworld.com.au | (03) 9655 3881 | info @ibisworld.com
September 2018  1
September 2018
number of listed corporations in other
agricultural segments.
7-Eleven Stores ($5.9 billion) has had a
commendable revenue rise (14.6%) in the
Convenience Stores/Fuel Retailing arena,
especially since the revenue of both these
industries has stayed the same or fallen.
International clothing retailer Cotton
On Group grew spectacularly (20.4%),
catapulting from 17th place in 2017 to
10th place in 2018. Capitalising on a
growing consumer preference for
affordable fashion, shoes and accessories,
Cotton On Group has opened more ‘mega
stores’, which typically house at least four
of the Cotton On brands.
Chartered accounting (CA) firms also
held their own or climbed into the high
end of the ladder in FY2018, headed by
PwC Australia (12th place), Deloitte
Touche Tohmatsu (14th), EY (18th) and
KPMG (21st, up from 25th in 2017).
In this year’s Top 500 Private
Companies list, 48 companies generated
revenue over $1.0 billion, accounting for
an impressive 12.3% of the nation’s
390 companies with revenues in that
size sector.
The cut-off point for entry this year
was just over $78 million.
WWW.IBISWORLD.COM.AU September 2018  2

The Top 500 Private Companies in perspective

The Top 500 Project Composition of Largest Private Businesses

The Top 500 Privates (% of total basis) 2018
IBISWorld’s Top 500 Private
Companies list is ranked by
4.2% 2.8%
Co-ops
revenue. The list includes Associations
public unlisted companies, 5.6% 0.2%
Partnerships Trusts
partnerships, associations
and private companies. To
compile the list, IBISWorld
gathered data through
primary research, ASIC- 21.3% 65.9%
lodged company reports Unlisted public
and its own appraisals of companies Proprietary
companies
company revenue based
on historic data and
industry analysis.

$219.6 billion
Revenue
SOURCE: ABS & IBISWorld 01/09/2018

Private enterprise ownership million businesses were non-employing,

Proprietary companies dominate the Top
500 Privates, accounting for 66.0% of total
revenue, followed by unlisted public
companies (21.0%) and partnerships
(6.0%). Associations, co-ops and trusts
make up the balance of total revenue.
Australia’s enterprises
Australia began FY2018 with almost
67,000 more businesses (up 3.1%) than
the year before – a record number. This was
the third year in a row in which business
numbers grew, after a decline as we
entered 2013-14. As usual, most of the 2.2
with many business owners also
working elsewhere. That said, at any point
in time, one in eight households own a
business that may represent some or all of
its income.
An estimated 855,600 businesses
employed the bulk of the nation’s 12.6
million workers and generated the vast
majority of Australia’s $1.8 trillion GDP
and $5.1 trillion revenue in FY2018. In
FY2017, 328,000 new businesses started
and 261,000 exited, so both ambition and
attrition were present in big licks. The
attrition rate amounted to one in eight.
WWW.IBISWORLD.COM.AU September 2018  3

The Top 500 Private Companies in perspective

About IBISWorld Size of Enterprises in Economy

Operating businesses by employment size (% of total basis) 2017-18
Since 1971, IBISWorld has
been providing thoroughly 9.1% 2.3%
20 to 199
Five to 19 employees
researched, reliable and
employees 0.2%
current business Over 200
information that is employees
considered priceless to
many subscribers. Today,
IBISWorld employs a team
of dedicated expert
analysts who research
27.2% 61.2%
economic, demographic Non-employing
One to four businesses
and government data so employees
you don’t have to. We can
provide your organisation
with valuable insights on
Australia’s 500 industries,
its top 2,000 companies
and its key business
environment indicators. We
2,238,299
have also recently Enterprises
introduced a New Zealand SOURCE: ABS & IBISWorld 01/09/2018

collection of 200+ industry

reports so that you can
make superior business
decisions now – and into
the future.
IBISWorld’s unrivalled
range of accurate and
cutting-edge business
information is available
direct to your desktop
whenever you need it.
Whatever your industry,
IBISWorld knows about you
and your competitors.
Enterprise size
The first chart below shows the distribution
of enterprises across the nation by revenue
size segments. The second chart below
shows the distribution of enterprises across
the Top 500 Privates by size segments.
The Top 500 Privates with revenue over
$1 billion accounted for nearly half
(40.0%) of the total revenue generated by
private companies, followed by those with
revenues between $100 million and $500
million (20.0%). So, the largest 500
privates are not far short of the big-end-of-
town corporations. As yet, they have not
joined the over $10 billion revenue club;
but they could do so in the early 2020s.

For more
information,
please call us on
(03) 9655 3881
WWW.IBISWORLD.COM.AU September 2018  4

The Top 500 Private Companies in perspective

About the author Size of Enterprises in Economy

Number of businesses, by revenue 2017 (estimate)
Phil Ruthven is the Founder 14.3%
of IBISWorld, an 17.7% Over $10 billion
international corporation General government 33 corporations
7,274 entities
providing online business
information, forecasting
4.0%
Government business
and strategic services. enterprises
IBISWorld now operates in 14,000 corporations

Australia, the United States 0.6%

Less than $0.1 million
22.6%
(NY and LA), Canada, 1,250,000 corporations
$1-10 billion
China, the United Kingdom 390 corporations

and New Zealand. It plans 3.2%

$0.1-1 million
to add the rest of the 610,000 corporations

European Union, and Japan

over the next five years or 16.9%
so. In 2014, Phil became a $1-10 million
310,000 corporations
Member of the Order of
9.8% 10.9%
Australia, in recognition of $10-100 billion $0.1-1 billion
his significant service to 17,500 corporations 1,460 corporations

business and commerce, $5.12 trillion

and to the community. Revenue
(2.2 million trading businesses)
Phil contributes regularly SOURCE: IBISWorld 01/09/2018

to radio, TV, newspapers,

magazines and
documentaries on business, Composition of the Largest 500 Private Businesses
By revenue size and including superannuation funds (% of total basis) 2018
economic and social issues.
He continues to be one of 1.6%
Australia’s most frequent Under $100 million
and prolific commentators
in demand by the media,
and is widely considered
the nation’s most respected 38.9%
strategist and futurist on $100 to $500
million 40.0%
business, social and Over $1.0 billion
economic matters.

19.5%
$0.5 to $1.0 billion

$219.6 billion
Revenue
SOURCE: IBISWorld 01/09/2018
WWW.IBISWORLD.COM.AU September 2018  5

The Top 500 Private Companies in perspective

Size and growth perspective
The Top 500 Privates generated 4.3% of
the nation’s revenue in FY2018. After
allowing for non-responses, the Top 500
Privates accounted for an estimated 4.6%
of the nation’s total employment, up from
4.4% in the previous survey. Revenue
growth among the Top 500 Privates
averaged a healthy 6.9%, compared with
the nation’s total revenue growth of 5.8%.
Interestingly, only 46 players in the
2017 Top 500 Privates list dropped out of
the list, representing a low but healthy
attrition rate of 9.0%. Renewal is part of a
vibrant economy. However, some of the
businesses no longer on the list are still
performing well. Many of these businesses
are subsidiaries of other firms, are listed on
the stock exchange, or are still growing but
not fast enough to keep up with newer,
more energetic companies.
That said, 114 companies, or more than
one in five, in the Top 500 Privates list had
falling revenues over the past 12 months,
suggesting that being big doesn’t make
one immune from setbacks.
While the Top 500 Privates’ growth
outpaced the nation’s average in 2018, the
Fastest Growing Top 25 chart below shows
that some companies grew much more
significantly than others. Growth ranged
from a staggering 38.0% (VOS
Construction) to a stratospheric 282.0%
(Walter & Eliza Hall Institute).

Top 25 Fastest Growing

Revenue growth (% 2018 over 2017)
VOS Construction
Georgiou Group
Sarah Group
Pentarch Group
AFL
Mossop Construction & Interiors
Built
Vaughan Constructions
Columbus Capital
RSEA
WorkPac Group
Ignite Travel Group
Australian Clinical Labs
Newcastle Coal Infrastructure Group
Anglicare
Grand Motors Group of Companies
St Vincent de Paul
Lipman
CATCON
Metro Property Development
Crick Auto Group
Delta Electricity
Incat
Hancock Prospecting
Walter & Eliza Hall Institute

0 50 100 150 200 250 300 350

% Revenue growth SOURCE: IBISWorld 01/09/2018

Geographic perspective of our states and territories, with New

This year’s Top 500 Privates list follows, South Wales and Victoria accounting for a
reasonably closely, the population shares bigger share than their populations.
WWW.IBISWORLD.COM.AU September 2018  6

The Top 500 Private Companies in perspective

Composition of Top 500 Privates

By geography (% of total basis) 2018

5.3% 0.7% 0.3% 0.0%

ACT Tasmania Northern
South Australia
Territory
11.2% 2.1%
1.7% Tasmania 1.0%
34.2%
Western Australia Northern
ACT
7.0% Territory
New South South Australia
Wales
10.5% 32.0%
Western Australia
New South
Wales
15.6%
Queensland
20.0%
Queensland

25.7%
Victoria

Population
32.8%
Victoria
Top 500 Privates Revenue
SOURCE: ABS and IBISWORLD 01/09/2018

Industry mix mix of the nation at large

The two charts below show and the Top 500 Privates, in
the contrast between the industry revenue terms.

Australia’s Industry Mix

By revenue, shares of total 2017-18 (estimate)
1.4%
Personal and 2.3% 4.3%
Other Services Agriculture
Mining
0.7% 2.7% 7.9%
Arts and Recreation Manufacturing
Education
Services
4.4% 2.8%
Health and Community Utilities
Services 11.5%
Public Administration
2.1% and Safety
Hospitality 8.0%
1.8% 5.2% Construction
Administration and Durables
Support Services

4.8%
Professional, Scientific and
Technical Services
3.0% 10.2%
Dwellings and Wholesaling
ownership (imputed)
3.3%
Rental and
Sectors Real Estate
Primary 8.6%
Retailing
Secondary 14.5%
Finance and 4.0% $5.12 billion
Tertiary Insurance 1.7% Transport Revenue (current prices)
Quaternary Media and and Postal
Communications
Quinary
SOURCE: IBISWorld 01/09/2018
WWW.IBISWORLD.COM.AU September 2018  7

The Top 500 Private Companies in perspective

Top 500 Private Companies Industry Mix

By revenue, shares of total 2018
2.4%
Personal and 1.2%
2.7%
Other Services Agriculture
Mining
2.0% 12.6%
Arts and Recreation Manufacturing
Services 0.4%
8.1% Education 0.6%
Health and Utilities
Community Services 2.1%
1.9% Administration and
Hospitality Support Services 13.3%

8.8%
5.2% Construction
Professional, Scientific and Durables
Technical Services

3.2%
Rental and
Real Estate

8.4%
Finance and
Insurance 10.1%
Wholesaling
Sectors 0.4%
Primary Media and
Communications
Secondary 5.6%
16.1%
$219.6 billion
Tertiary Transport
and Postal Retailing Revenue
Quaternary
Quinary
SOURCE: IBISWorld 01/09/2018

The industry mix of the Top 500 Privates
is more reminiscent of the Industrial Age
than the current Infotronics Age.
Secondary and tertiary industries account
for a combined 58.0% of revenue in
FY2018, compared with the nation’s
42.0%, but the gap is slowly closing.
However, we have omitted many
superannuation funds from the chart
above (and survey). Including these
superannuation funds would bring the mix
back to a similar mix to the nation at large.
So, our Top 500 Privates are, in fact, a
microcosm of the nation at large in terms
of industry mix and growth.
IBISWorld’s annual survey of the
nation’s private companies is highly
valuable. This year, the survey points to
greater conservatism among the Top 500
Privates. Many of these firms have
survived for so long they have become
dynastic. However, the survey also
indicates the new age we are in, with the
significant number of quaternary and
quinary sector businesses. The survey also
indicates a lower attrition rate (9.0%)
among the Top 500 Privates, compared
with the rate among the nation’s total
2.2 million businesses (12.0%). In
addition, even among the nation’s 2.2
million businesses, the larger ones (with
over $2 million revenue) have a higher
survival rate due to experience and
economies of scale.
WWW.IBISWORLD.COM.AU September 2018  8

The Top 500 Private Companies in perspective

Profitability latest available data in 2017.

Subscribe and become While Australia’s companies do not The average ROSF of the best 50 private
an industry expert average high returns on their capital overall, companies (43.3%) is very impressive,
Subscription packages can the Best 50 Privates list below shows that beating out the best 50 listed companies
be tailored to meet your there are some high-fliers among the (31.5%). However, it is not yet in the
individual or company’s nation’s largest private companies. The league of the best 50 foreign
needs. Benefits of data covers a three-year average up to the companies (72.8%).
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