Profits on UK plcs jumped 86% to £210.8bn in the year to the end of June, the highest since 2012, according to the latest Profit Watch UK report.
The report from The Share Centre looks at quarterly and interim results reported during the three months to the end of June 2018. The firm has updated its methodology to use most recent results rather than just annual results and to compare and contrast with analyst forecasts.
The sharp increase in profits was driven by a large one-off profit from British American Tobacco (BAT) which acquired Reynolds American. If this was excluded, then profits rose 66%.
Oil also helped; profits for oil businesses were seven times higher than in the previous year. On the other hand, healthcare firms such as AstraZeneca disappointed with every healthcare company apart from Shire reporting lower profits.
The report's profit index was 116.6 at the end of June, nearly triple the post-crisis low of 30.12 in mid-2016.
Meanwhile, revenues rose 13.6% year-on-year to £1.97trn, helped by the oil and mining sectors which contributed two-thirds of the £236bn increase thanks to higher oil and metal prices.
Consumer goods, housebuilders and industrials also saw strong growth, although zero sectors saw negative growth, the lowest was 1.1% reported by telecoms.
The report's index of UK revenues rose to 155.61 which indicated UK plc's sales have jumped by more than half since 2007, rising almost twice as fast as inflation.
Over the next year, the report said the market expects typical earnings growth of 6.7% which was a "marked slowdown" on recent performance.
This was "achievable" but would be made more difficult by growing global trade tensions and less robust global demand which contribute to slowing growth.
Total value of profits earned would decline 7% to £196bn as the profit from BAT drops out of the cycle.
Two join in the top ten
Reducing equities and corporate bonds
Behaviours, animals or something else?
Stepped down following MBO
Helped by rising oil price