A Hove-based company is the second largest privately-owned company in Britain.

Palmer & Harvey, which distributes cigarettes, sweets and soft drinks, was the South-East's top company and second overall in the annual Top Track 100 league table.

The table was published by The Sunday Times and sponsored by KPMG.

It ranks Britain's largest unquoted companies based on sales in their latest accounts.

Palmer & Harvey was joined on the list by Crawley-based Virgin Atlantic, ranked 13th and Southern Water, based in Worthing, which was 74th. Other major Sussex employers to be featured included Hogg Robinsons, based in Farnborough, Hampshire, but employing 786 people in Crawley.

Palmer & Harvey also finished second last year behind the John Lewis Partnership, which repeated its win in 2003.

Palmer & Harvey claims to deliver 26 per cent of the tobacco and 15 per cent of the confectionery sold in the UK.

The company was founded in 1925 and bought by its management in 1988.

Last year, the company's executives bought out the 1988 management team in a £160 million deal.

It reported operating profits of £12 million on sales of £3,328 million and employed 3,177.

Virgin Atlantic slipped from last year's eighth but stayed near the top.

It has a fleet of 26 aircraft serving 22 destinations and has just ordered six new Airbus 380 aircraft.

It reported an operating loss of £81 million on sales of £1,416 million but forecast a return to profit in draft accounts to April 2003.

Southern Water is a new entry and reported operated profits of £203 million on sales of £430 million in 2002, a 47 per cent margin.

The firm supplies water to more than one million homes.

Martin Baggs, operations director, said: "I am delighted Southern Water has gained national recognition. It is a tribute to the hard work of our staff."

Wednesday July 9 2003