Analysing the financial state of the UK companies, Plimsoll gives 387 a strong financial rating for their outstanding financial performance, despite the recession.
But 152 companies are on the danger list with their management operating under “severe financial pressure”.
Ratings in the Plimsoll Analysis have been given as Strong, Good, Mediocre, Caution or Danger according to their overall financial performance.
Ratings were:
Strong (delivering an excellent performance): 387 (42 per cent)
Good (holding a respectable position) 129 (14 per cent)
Mediocre (needing improvement): 157 (17 per cent)
Caution (in a weakened financial position): 97 (11 per cent)
Danger (their survival now in question): 152 (16 per cent)
David Pattison, senior analyst at Plimsoll, said: “It was no real surprise to see the high number of companies on the danger list, given the current economic crisis affecting the security industry.
“However we were very surprised to see the high number of excellent businesses making it on to the strong list.
“I think these firms have really upped their game in these difficult times and they are concrete proof that necessity is the mother of invention.”
During the latest financial year analysed, the 387 strong firms have boasted the following impressive performance statistics:
Sales growth: “On average these firms have seen sales increase by 8 per cent. This figure is an impressive statistic in a market which is generally flat. This demonstrate the strongest players’ ability to take market share from their rivals.”
Profit margins: “For the strong companies, their profit margins are sitting at an average of 8.7 per cent as they have cut costs and used competitive buying to increase their bottom line.”
Levels of debt: “Debts have all but been removed from these companies. Most are operating completely debt free, thus reducing their reliance on the banks and other lenders.”
Efficiency / productivity: “Big improvements in efficiency mean these firms are now delivering over GB pound 121,000 sales per employee compared to others in the industry that struggle to deliver GB pound 88,000. This gives them a significant competitive advantage.”
But of the 249 firms on the “caution” and “danger” lists, Pattison says there is “real concern.
“Their futures look extremely uncertain. Their management are now operating under severe financial pressure where even normal trading is proving hazardous.
“Many of these firms seem likely to be sold off; they are at an extremely high risk of failure unless they turn their performance around fast.”
In this edition of the Plimsoll Analysis – Security each firm is named, analysed and rated based on their latest financial performance.
Copies: GB pound 350 by calling Clair Sherwood on 01642 626422 or emailing [email protected].
