Almost one third of the UK’s electrical contractors are struggling to make money, even though the other two thirds are recording outstanding returns, according to industry analysis by Plimsoll Publishing.

While over 60% of the 2000 companies analysed are making on average 71% margins, one third averaged a 0.9% pre-tax loss, with an average return on investment of –6%. These figures are down from the corresponding period last year when struggling firms reported a 0.4% profit and 1.5% return on investment.

David Pattison, senior analyst, says: “We are seeing from these numbers just how tricky the recent trading period has been for companies to return a profit and how many are really struggling. Yet, at the same time, over two thirds of companies assessed seem untouched by recent cost increases and competitive pricing. They have been able to record fantastic results.”

Source

Electrical and Mechanical Contractor

Postscript

Copies of Plimsoll’s full 2410-page analysis are available for £350 but EMC readers get a 5% discount. Call 01642 626400.