Prolific North’s Top 50 integrated agencies are powering a £568m boom for the Northern economy – but new research reveals profits are shrinking considerably.
Prior to the list reveal, we have broken down key figures from the research that has gone into compiling Prolific North’s Top 50 Integrated Agencies 2025 and taken a look at what the data tells us about the state of the industry in the North.
On the financial front, the research tells a tale of two stories. The latest figures, compiled exclusively for Prolific North by long-time research partners Mustard, show that while total turnover for the North’s leading agencies has grown strongly over the past year, pre-tax profits have declined significantly – highlighting ongoing pressures squeezing the sector.
READ MORE: The Top 50 Integrated Agencies ranking for 2025 now revealed
Robyn Mason, research manager at Mustard, said: “The agency landscape this year shows continued growth and resilience. Whilst agencies are expanding and driving revenue, sustaining profitability has become more challenging.”
Mustard’s research found that the combined turnover of the Top 50 agencies tells a story of resilience. Total turnover of last year’s Top 50 stood at £497m, before climbing to £568m this year – a 14% increase year-on-year.
The data suggests that despite economic headwinds, the North’s integrated agencies have adapted, with many likely benefiting from renewed client confidence, new business wins, or strategic shifts in service offerings. Another positive trend is in the acceleration of growth rates among the top agencies. Last year the average growth rate across the Top 50 was 16%, but it has surged to 47% this year.
READ MORE: Who will take the crown? Predicting Prolific North’s top 50 integrated agencies 2025
However, profitability tells a different story. Combined pre-tax profits for the Top 50 were £47m last year. But this year’s Top 50 have seen pre-tax profits fall to £38.4m over the past year – an 18% decline.
This downward trend suggests that despite higher revenues, agencies are facing rising costs – whether from wages, overheads, or investment in talent and technology. It may also reflect competitive pricing pressures in a tight market.
And with National Insurance costs set to rise from next month, businesses of all shapes and sizes are set to face further challenges.
Phil Gripton, partner at Waypoint, an expert global growth and M&A advisory firm, said decline in pre-tax profits illustrates the “mounting pressures agencies face as thier clients demand more from same or less.”
“We have seen causal factors for this kind of contraction across our clients as they are enduring rising costs associated with wages, overheads, and investments in talent and technology which has been accelerated as AI has rolled out,” he explained. “Additionally, competitive pricing pressures in a tight market are forcing agencies to lower their margins to stay competitive as the ever-growing agency market drive more competition and in commoditised areas can be a race to the bottom for margin.
“The upcoming rise in National Insurance costs will no doubt further exacerbate these financial strains.”
He says the top agencies are mitigating the challenges with innovation. “Many are focusing on optimising their operations and managing costs more effectively,” he said. “Using better process, focussing on critical metrics and being active in driving wastage down. This includes investing in technology to improve efficiency and exploring new revenue streams.
“The better agencies are also emphasising the importance of maintaining a balance between growth and profitability, ensuring that their financial planning prioritises profit margins. Additionally, there is a growing trend towards leveraging AI and automation to save time on repetitive tasks and enhance overall productivity.”
While the rebound in turnover is a positive sign, showing that the North’s integrated agency landscape remains dynamic and resilient, the profit squeeze is proof agencies “must continue to innovate and optimise their operations to maintain profitability in the face of rising costs and competitive pressures.”
Phil said: “In our experience there is often multiple points of incremental profit to be had from a proper scrub of the operating model and then some step by step corrective actions being put in place and adhered to. By adopting strategic cost management and exploring new higher margin revenue opportunities, agencies can navigate the challenges ahead and achieve sustainable growth.”
For over a decade, Prolific North’s Top 50 ranking has been the definitive benchmark for integrated agencies across the North, assessing financial performance, growth, headcount, and more. Compiled by research experts Mustard, the list is rigorously independent, offering an authoritative snapshot of the sector.
The Top 50 list reveals who’s thriving, new entrants and climbers, and much more. And it isn’t just a list of the biggest or most profitable – it’s a carefully weighted ranking, consistent year-on-year, highlighting the best-performing agencies right now.
Mustard explained what goes into the list. “The rankings are determined through a comprehensive analysis of both financial and non-financial factors,” they explained. “We assess key metrics such as turnover alongside operational data such as headcount.
“Whilst some information holds more weight than others, it’s typically the better you do as an agency (for example, the higher your turnover or % growth) the higher you’ll appear on the Top 50 list.”
You can now check out the full list for 2025 here.
