A recent survey by Plimsoll Publishing indicates that 27% of electrical contractors will cease business during 2001 if they do not change their current practices.
Over a quarter of UK electrical contractors will not survive the next year in their present form.

Plimsoll Publishing's latest analysis predicts that the 27% of companies identified as "losers" will cease trading or risk takeover unless they change.

The analysis, which identifies four main market groups: winners, chancers, sleepers and losers, predicts acquisition activity could intensify in 2001 as the top two groups try to maintain sales and profit targets.

These two groups make up 49% of the market and have a combined sales growth average of over 25·3%. The losers, 27% of companies, have a sales growth of -10·9%.

Debt levels as a percentage of sales ranges from 14·9% for the losers to 1% for the winners. A "more sensible" average of 4·8% is suggested as a target.

Companies in the losers group are said to have lost market share. The companies' pre-tax margins are given as only 1·1%, and almost 37% of them are loss-making.

Copies of the survey First Edition 2001, Plimsoll Portfolio Analysis cost £305 (5% discount to our readers). Call 01642 257800 or visit www.plimsoll.co.uk.

Source

Electrical and Mechanical Contractor