According to industry analysts Plimsoll Publishing, acquisition activity is likely to increase in the UK Windows & Doors industry over 2005. A new study highlights 329 cash-rich companies that are ideally placed to enhance their earnings by acquiring a competitor.

122 companies have been identified as their acquisition prospects. The average level of debt for these companies is 11 per cent of turnover. However, the analysis also demonstrates that each of these businesses could be turned around in a short period of time.

David Pattison, Senior Analyst at Plimsoll, maintains: ‘Those under pressure companies are running out of options. As the average industry profit margin is only 2.7 per cent and over half of companies are failing to increase sales, trading their way out of their current position will be almost impossible.

‘With so many cash rich companies operating in the market, selling up might be the only sensible option left. By acquiring and clearing the debts of any one of these struggling companies, a cash rich company could become the proud owner of a profitable business.’

The Plimsoll Portfolio analysis – Windows & Doors is a comprehensive financial analysis of the top 1000 companies in the industry, and includes a free acquisition pack highlighting the under pressure companies that may well be acquisition prospects. Plimsoll, tel. 01642 626400, email david@plimsoll.co.uk

Source

Glass Age