Plimsoll: debt will crush many
A significant number of all UK residential homes companies will not see out 2001 in their present shape, according to Plimsoll Publishing. Their new First Edition 2001, Plimsoll Portfolio Analysis predicts in 2001 about 184 companies will disappear, be taken over or be forced to change to stay in the market. The analysis, which included 914 companies in total, says those companies which are capturing markets and profits with a combined sales growth average of over 17.3% are pushing less profitable companies out of the market. As the former try to maintain sales and profit targets, acquisition activity could intensify in 2001. Plimsoll says time is running out for companies with high levels of debt Â at 147.1% of sales on average. “A more sensible average would have been about 93.4%,” the Plimsoll report says. “These companies have lost market share and sales figures for the latest period are showing an average decline of 3.5%. Their margins are slim at 3.4% on average and almost 39% of them are loss making.