Crunch bites chemical firms
June 1st 2008 The economic slowdown is hitting cleaning chemical suppliers, putting pressure on managers to keep their companies in the market, according to analysts, Plimsoll Publishing.
The firm says the UK’s largest 24 companies now control 98 per cent of the market, and their battle for marketshare is impacting their financial performance.The company claims the value of these companies has plummeted 40 per cent in the last 12 months. According to Plimsoll, of the 24 companies surveyed:
• 12 of the companies are showing no sales increase at all
• eight are selling less than they were two years ago
• 17 companies have failed to increase sales at the same rate as their investment
• 11 companies increased their debts simply to hold their place in the market
Plimsoll has awarded nine of the firms a danger rating as a result of their failing business strategy. It says they are ripe for the taking by stronger market rivals.“If you have the cash reserves, it’s a great time to go on the offensive,” says senior analyst, David Pattison.
The full report (£100 discount available when quoting PR5) details those in a position of relative strength, and those struggling to stay afloat.
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