Mid caps have outpaced large caps as they continue to benefit from exposure to the UK economic resurgence, according to The Share Centre Profit Watch.
In the year to 31 March 2014, gross profits of mid caps increased 5.1 per cent to £17.4bn, up from £16.5bn in the first quarter of 2013.
Gross profits of large caps fell 1.2 per cent to £60.2bn during the same period.
Net profit was up further for mid caps during the year, rising 32.8 per cent as the companies made £3.9bn, rising from £3bn in the previous year.
The top 100 companies – excluding Vodafone – made net profits of £18.2bn, an increase of 22.2 per cent.
FTSE 100 revenues rose by 1 per cent over this time while, on a like for like basis, revenues for the FTSE 250 rose by 3.3 per cent.
The Share Centre investment research analyst Helal Miah says: “Midcaps are storming ahead of the top 100 at every level, from revenues to profits.
“Midcaps are reaping the benefits of growth in the domestic economy, while their larger counterparts are more exposed to foreign markets, and to the exceptionally strong pound, the strongest currency in the world in the last year.
”With the UK economy recovering quickly, middle ranking firms are clearly benefiting. While the global economy is sluggish and currency headwinds persist, it will take longer for their global counterparts to catch up.”