British companies that generate the bulk of their revenues outside the UK are seeing an upturn in business as sterling looses value against the dollar and euro.

The high cost of the dollar and euro has hit UK consumers and companies reliant on imports. However, the fall of sterling has also boosted the profits of many British companies whose sales are largely generated overseas.

UK companies that focus on the American market, such as the jewellery retailer Signet, have recently seen their shares climb.

In a recent research note UBS noted that from mid-July, when sterling's decline against the dollar began, over 80% of companies with a high exposure to the US outperformed the market.

The extent of a companies currency gain depends on whether goods and services are produced domestically or in non-sterling zones.

Many UK company's with large US sales also have large operations based there. This has resulted in the sales gains being largely dissipated by the higher costs of sales and production when measured in pounds.