Industry analyst Plimsoll Publishing reports zero growth, sliding profits and escalating debts for many firms in the UK electrical contracting industry.
Markets are tightening, supply is outstripping demand and 54% of companies surveyed have deteriorated in overall financial strength compared to the same time 12 months ago.

These are the ominous findings of the latest financial health check on the UK's top 2000 electrical contracting companies, carried out by industry analyst Plimsoll Publishing.

The report classifies companies into one of five categories – strong, good, mediocre, caution and danger – according to their financial strength. Alarmingly, 54% of companies rated have deteriorated in financial strength from last year and 129 companies are experiencing their second year in the danger rating band.

David Pattison, senior analyst for the electrical contracting industry said: "The danger rating is given to companies whose financial performance is suffering. Their balance sheets are now straining under the heavy debts and this, combined with companies already losing money, could be a fatal mix. Strictly speaking, a company cannot stay in the danger rating. Either they will improve or disappear. The danger rating can be a great opportunity to rebuild or for a new owner to take a company over."

On a more positive note, 149 companies have been named as strong or tipped to prosper in 2003. They have strong recent performance and healthy sales growth.

For a copy of the report, costing £305, call 01642 626400 or visit www.plimsoll.co.uk. Readers of EMC can get a 5% discount if they mention this article on ordering.

Source

Electrical and Mechanical Contractor