With sales set to increase an average of 3.5% and profit margins likely to reach their highest level for seven years at 4.6%, the Plimsoll report found that 44% of the 348 companies surveyed are confident of their prospects for the coming year.
Plimsoll identified three distinctive views. The strongest 44% could achieve sales of 10% on average with margins as high as 9.9%. Another 30% will be in transition, where sales could be flat but margins could reach 4.1%.
Around 26% of loss-making companies will have a difficult year, and will have to react quickly to survive in 2004. Margins at these companies will have to improve as they are
currently losing an unsustainable 14% on sales.
In a separate report entitled Top 70 Analysis of Burglar & Intruder Alarms Systems Companies, Plimsoll maintains 34% of the largest companies constitute 96% of the market and are increasingly looking to capture market share from their competitors. The increased competition has resulted in 36 companies underperforming with an average return on investment of just GB pound 1.64 per GB pound 100 invested.
