In welcome good news, there has been a marked fall in the number of companies making a loss in the UK Heating Contractors industry according to new research from analysts Plimsoll. Clearly, companies have battened down the hatches and rebuilt their profitability to give themselves the best chance of riding out the current economic turbulence.
David Pattison, senior analyst on the latest report explains, “When we examined profitability in the Heating Contractors market last year we found millions of pounds worth of profit being wasted. In our latest analysis, the number of companies making a loss has fallen from 349 to 318. It’s quite remarkable that so many companies have managed to rebuild their profitability during the worse trading conditions in recent memory”.
Pattison also reserves special praise for the 164 “high profit” companies that are leading this profitability renaissance. He says, “These companies really are profit kings. While the average profit margin hovers around 3%, these companies are averaging 12%. To do so in a tight market is testament to how well these companies are managed”.
Naturally, not all of the 1000 companies Plimsoll has analysed in their report have got it right and Pattison warns, “While there is good news elsewhere, it is worth remembering that there are still 318 companies making a loss, 165 of which are doing so for the 2nd or even 3rd year running. What’s more, many of these loss making companies have seen their debts rise in the same period. Sadly, we have issued a Danger rating for 93 companies in the report as a result of this toxic mix”.
The new Plimsoll Analysis – Heating Contractors will tell you which companies are following the right strategy and those heading in the wrong direction. With an individual commercial, strategic and financial study of each of the top 1000 companies in the market, it is the ultimate guide to performance in the market.
Readers of Specification Magazine are entitled to a £50 discount of this new special edition of the Plimsoll Industry Analysis – Heating Contractors. Call 01642 626400 for further details and quote reference PR/CS40.
